Job Search Requirements for Older Unemployed: Transitions to Employment, Early Retirement and Disability Benefits

Hans Bloemen (), Stefan Hochguertel and Marloes Lammers
Additional contact information
Stefan Hochguertel: VU University Amsterdam
Marloes Lammers: VU University Amsterdam

No 11-008/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This discussion paper resulted in a publication in the 'European Economic Review' 2013, 58, 31-57.

In this paper, we use a recent policy change in the Netherlands to study how changes in search requirements for the older unemployed affect their transition rates to employment, early retirement and sickness/disability benefits. The reform, becoming effective on January 1st 2004, required the elderly to formally report their job search efforts to the employment office in order to avoid a (temporary) cut in benefits. Before the new law was passed, unemployed were allowed to stop all search activity at the moment they turned 57.5. Estimating various duration models using difference-in-difference and regression discontinuity approaches, we find that for several groups of individuals that were affected by the policy change, the stricter search requirements did significantly increase their entry rate into employment. However, we also find evidence of a higher outflow to sickness/disability insurance schemes, a presumably unwanted side-effect of the policy change.

Keywords: Duration Analysis; Policy Evaluation; Search effort; Substitution (search for similar items in EconPapers)
JEL-codes: C31 J26 J64 J68 (search for similar items in EconPapers)
Date: 2011-01-13
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Job search requirements for older unemployed: Transitions to employment, early retirement and disability benefits (2013)
Working Paper: Job Search Requirements for Older Unemployed: Transitions to Employment, Early Retirement and Disability Benefits (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20110008

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