Duration of Unemployment Benefits and Quality of Post-Unemployment Jobs: Evidence from a Natural Experiment

33 Pages Posted: 20 Apr 2016

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

Date Written: October 1, 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 the type of contract (temporary versus permanent), the duration of the post-unemployment job, or the wage earned in the job.

Keywords: Labor Markets, Youth and Governance, Economic Theory & Research, Social Protections & Assistance, Social Risk Management

Suggested Citation

van Ours, Jan C. and Vodopivec, Milan, Duration of Unemployment Benefits and Quality of Post-Unemployment Jobs: Evidence from a Natural Experiment (October 1, 2006). World Bank Policy Research Working Paper No. 4031. Available at SSRN: https://ssrn.com/abstract=937125

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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