The effect of unemployment benefits on re-employment rates: Evidence from the Finnish UI-benefit reform

Arbeitspapier

In January 2003, the unemployment benefits in Finland were increased for workers with long employment histories. The average benefit increase was 15 per cent for the first 150 days of the unemployment spell. In this paper we evaluate the effect of the benefit increase on the duration of unemployment by comparing the changes in the re-employment hazard profiles among the unemployed who became eligible for the increased benefits to the changes in a comparison group whose benefit structure remained unchanged. We find that the benefit increase reduced the re-employment hazards at the beginning of the unemployment spell. The effect disappears after the eligibility period for the increased benefit expires.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2007:21

Classification and Topics

• Classification: Wirtschaft ; Unemployment: Models, Duration, Incidence, and Job Search ; Unemployment Insurance; Severance Pay; Plant Closings
• Subject: Unemployment insurance ; duration models ; Arbeitslosenversicherung ; Berufliche Integration ; Wirkungsanalyse ; Finnland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Uusitalo, Roope ; Verho, Jouko
• Event: Veröffentlichung
• (who): Institute for Labour Market Policy Evaluation (IFAU)
• (where): Uppsala
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/78662
• Last update: 10.03.2025, 11:41 AM CET