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

IZA Discussion Paper No. 2171

CentER Discussion Paper No. 2006-56

34 Pages Posted: 24 Jul 2006  

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: June 2006

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.

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

JEL Classification: C41, H55, J64, J65

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: https://ssrn.com/abstract=915361

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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