Job Search Requirements for Older Unemployed: Transitions to Employment, Early Retirement and Disability Benefits

Tinbergen Institute 11-008/3

49 Pages Posted: 16 Jan 2011

See all articles by Hans Bloemen

Hans Bloemen

VU University Amsterdam; IZA Institute of Labor Economics; Tinbergen Institute; Netspar

Stefan Hochguertel

VU University Amsterdam; Tinbergen Institute

Marloes Lammers

SEO Economic Research; Netspar

Multiple version iconThere are 3 versions of this paper

Date Written: January 13, 2011

Abstract

In this paper, we use a recent policy change in the Netherlands to study how changes in search requirements for the older unemployed affect their transition rates to employment, early retirement and sickness disability benefits. The reform, becoming effective on January 1st, 2004, required the elderly to formally report their job search efforts to the employment office in order to avoid a (temporary) cut in benefits. Before the new law was passed, unemployed were allowed to stop all search activity at the moment they turned 57.5. Estimating various duration models using difference-in-difference and regression discontinuity approaches, we find that for several groups of individuals that were affected by the policy change, the stricter search requirements did significantly increase their entry rate into employment. However, we also find evidence of a higher outflow to sickness disability insurance schemes, a presumably unwanted side-effect of the policy change.

Keywords: Duration Analysis, Policy Evaluation, Search effort, Substitution

JEL Classification: C31, J26, J64, J68

Suggested Citation

Bloemen, Hans and Hochguertel, Stefan and Lammers, Marloes, Job Search Requirements for Older Unemployed: Transitions to Employment, Early Retirement and Disability Benefits (January 13, 2011). Tinbergen Institute 11-008/3, Available at SSRN: https://ssrn.com/abstract=1739714 or http://dx.doi.org/10.2139/ssrn.1739714

Hans Bloemen (Contact Author)

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Stefan Hochguertel

VU University Amsterdam ( email )

Dept Econ (FEWEB)
De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 20 59 86033 (Phone)
+31 20 59 89870 (Fax)

Tinbergen Institute

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Marloes Lammers

SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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