How Changes in Benefits Entitlement Affect the Duration of Unemployment

Jan C. van Ours and Milan Vodopivec

No 4962, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 (search for similar items in EconPapers)
JEL-codes: C41 H55 J64 J65 (search for similar items in EconPapers)
Date: 2005-03
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (6)

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