Benefit entitlement and unemployment duration - The role of policy endogeneity

Details

Serval ID
serval:BIB_05F7E46E79EA
Type
Article: article from journal or magazin.
Collection
Publications
Title
Benefit entitlement and unemployment duration - The role of policy endogeneity
Journal
Journal of Public Economics
Author(s)
Lalive R., Zweimüller J.
ISSN
0047-2727
Publication state
Published
Issued date
2004
Peer-reviewed
Oui
Volume
88
Number
12
Pages
2587-2616
Language
english
Abstract
The potential duration of benefits is generally viewed as an important determinant of unemployment duration. This paper evaluates a unique policy change that prolonged entitlement to regular unemployment benefits from 30 weeks to a maximum of 209 weeks for elderly individuals in certain regions of Austria. In the evaluation, we explicitly account for the fact that the program was an endogenous policy response to a crisis affecting individuals with severe labor market problems. The main results are: (i) REBP reduced the transition rate to jobs by 17%; (ii) accounting for endogenous policy adoption is important and quantitatively significant.
Keywords
quasi-experiments, policy endogeneity, benefit entitlement, maximum benefit duration, unemployment duration, unemployment insurance
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Create date
19/11/2007 10:27
Last modification date
20/08/2019 13:28
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