Benefit Entitlement and Unemployment Duration: The Role of Policy Endogeneity
University of Lausanne - Department of Economics (DEEP); Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
University of Zurich - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 492
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.
Number of Pages in PDF File: 47
Keywords: Quasi-experiments, Policy Endogeneity, Benefit Entitlement, Maximum Benefit Duration, Unemployment Duration, Unemployment Insurance
JEL Classification: C41, J64, J65working papers series
Date posted: June 9, 2002
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.360 seconds