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http://ssrn.com/abstract=915361
 
 

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Shortening the Potential Duration of Unemployment Benefits Does Not Affect the Quality of Post-Unemployment Jobs: Evidence from a Natural Experiment


Jan C. Van Ours


Tilburg University - Department of Economics; University of Melbourne - Department of Economics

Milan Vodopivec


World Bank - Human Development Network; Institute for the Study of Labor (IZA)

June 2006

IZA Discussion Paper No. 2171
CentER Discussion Paper No. 2006-56

Abstract:     
This paper investigates how the potential duration of unemployment benefits affects the quality of post-unemployment jobs. It takes advantage of a natural experiment introduced by a change in Slovenia's unemployment insurance law that substantially reduced the potential benefit duration. Although this reduction strongly increased job finding rates, the quality of the post-unemployment jobs remained unaffected: the paper finds that the law change had no effect on either the type of the contract (temporary vs. permanent), the duration of the post-unemployment jobs, or the wage earned in this job.

Number of Pages in PDF File: 34

Keywords: unemployment insurance, potential benefit duration, job separation rates

JEL Classification: C41, H55, J64, J65

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Date posted: July 24, 2006  

Suggested Citation

van Ours, Jan C. and Vodopivec, Milan, Shortening the Potential Duration of Unemployment Benefits Does Not Affect the Quality of Post-Unemployment Jobs: Evidence from a Natural Experiment (June 2006). IZA Discussion Paper No. 2171; CentER Discussion Paper No. 2006-56. Available at SSRN: http://ssrn.com/abstract=915361

Contact Information

Jan C. Van Ours (Contact Author)
Tilburg University - Department of Economics ( email )
P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)
University of Melbourne - Department of Economics ( email )
Melbourne, 3010
Australia
Milan Vodopivec
World Bank - Human Development Network ( email )
1818 H Street, NW
Washington, DC 20433
United States
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
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