How Changes in Benefits Entitlement Affect the Duration of Unemployment

CentER Discussion Paper No. 2005-30

32 Pages Posted: 5 Apr 2005

See all articles by Jan C. van Ours

Jan C. van Ours

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

Milan Vodopivec

World Bank - Human Development Network; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: February 2005

Abstract

This paper investigates the disincentive effects of the potential duration of unemployment insurance (UI) benefits. The disincentive effects are identified by exploiting changes in the UI system in Slovenia, which involved substantial reductions in the potential benefit duration and had characteristics of a natural experiment. We find that the change had a positive effect on the exit rate out of unemployment - both to employment and to other destinations - at various durations of unemployment spells and for many categories of unemployed workers.

Keywords: Unemployment insurance, potential benefit duration, job finding rates

JEL Classification: C41, H55, J64, J65

Suggested Citation

van Ours, Jan C. and Vodopivec, Milan, How Changes in Benefits Entitlement Affect the Duration of Unemployment (February 2005). CentER Discussion Paper No. 2005-30. Available at SSRN: https://ssrn.com/abstract=695761 or http://dx.doi.org/10.2139/ssrn.695761

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

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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