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Titel
Estimating the effects of potential benefit duration without variation in the maximum duration of unemployment benefits / Tomi Kyyrä (VATT Institute for Economic Research and IZA), Hanna Pesola (VATT Institute for Economic Research) ; IZA Institute of Labor Economics
VerfasserKyyrä, Tomi In der Gemeinsamen Normdatei der DNB nachschlagen In Wikipedia suchen nach Tomi Kyyrä ; Pesola, Hanna In der Gemeinsamen Normdatei der DNB nachschlagen In Wikipedia suchen nach Hanna Pesola
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen In Wikipedia suchen nach Forschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, May 2017
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Umfang1 Online-Ressource (33 Seiten) : Diagramme
SerieDiscussion paper ; no. 10799
URNurn:nbn:de:hbz:5:2-126053 Persistent Identifier (URN)
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Estimating the effects of potential benefit duration without variation in the maximum duration of unemployment benefits [0.33 mb]
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Zusammenfassung

This paper examines the effects of unemployment benefit duration in Finland. To overcome the problem that the maximum duration of benefits is the same for all unemployed we exploit two observations. First, despite the uniform maximum benefit period, potential benefit duration at the beginning of unemployment spells varies across individuals because only those with sufficient work history in the past two years qualify for a new period of benefits whereas others may be entitled to unused benefit days from a previous spell. Second, part of this variation is exogenous due to a reform that reduced the minimum number of employment weeks required for the new benefit period. Using the exogenous part of the variation for identification we estimate that one extra week of benefits increases expected unemployment duration by 0.15 weeks, which corresponds to an elasticity of 0.5. We also find positive effects on the quality of the next job, especially when measured by job stability.