Duration of Unemployment Benefits and Quality of Post-Unemployment Jobs: Evidence from a Natural Experiment
33 Pages Posted: 20 Apr 2016
Date Written: October 1, 2006
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
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