Arbeitspapier

Benefit Entitlement and Unemployment Duration: The Role of Policy Endogeneity

The potential duration of benefits is generally viewed as an important determinant of unemployment duration. This paper evaluates a unique policy change that prolonged entitlement to regular unemployment benefits from 30 weeks to a maximum of 209 weeks for elderly individuals in certain regions of Austria. In the evaluation, we explicitly account for the fact that the program was an endogenous policy response to a crisis affecting individuals with severe labor market problems. The main results are: (i) REBP reduced the transition rate to jobs by 17 %; (ii) accounting for endogenous policy adoption is important and quantitatively significant.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 492

Klassifikation
Wirtschaft
Unemployment Insurance; Severance Pay; Plant Closings
Unemployment: Models, Duration, Incidence, and Job Search
Duration Analysis; Optimal Timing Strategies
Thema
quasi-experiments
policy endogeneity
benefit entitlement
maximum benefit duration
unemployment duration
unemployment insurance
Arbeitslosigkeit
Dauer
Arbeitslosenversicherung
Österreich

Ereignis
Geistige Schöpfung
(wer)
Lalive, Rafael
Zweimüller, Josef
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2002

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Lalive, Rafael
  • Zweimüller, Josef
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2002

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