Arbeitspapier
The Effects of UI Benefits on Unemployment and Subsequent Outcomes: Evidence from a Kinked Benefit Rule
This paper analyzes the effects of unemployment insurance (UI) benefits on unemployment exits and subsequent labor market outcomes. We exploit a piecewise linear relationship between the previous wage and UI benefits in Finland to identify the causal effects of the benefit level by using a regression kink design. According to our findings, higher benefits lengthen nonemployment spells and decrease time spent in part-time unemployment, and thus result in more full-time unemployment. Also the re-employment probability and post-unemployment wage are negatively affected. The results for the duration of the first post-unemployment job are not conclusive, but in total both employment and earnings in the two years following the beginning of the unemployment spell decrease with higher benefits.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 10484
- Klassifikation
-
Wirtschaft
Unemployment: Models, Duration, Incidence, and Job Search
Unemployment Insurance; Severance Pay; Plant Closings
- Thema
-
unemployment duration
job match quality
regression kink design
unemployment insurance
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kyyrä, Tomi
Pesola, Hanna
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute of Labor Economics (IZA)
- (wo)
-
Bonn
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
- 10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Kyyrä, Tomi
- Pesola, Hanna
- Institute of Labor Economics (IZA)
Entstanden
- 2017
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