Increasing incentives for reemployment

Juha Kettunen
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Juha Kettunen: The Research institute of the Finnish Economy

Finnish Economic Papers, 1993, vol. 6, issue 1, 51-60

Abstract: This paper studies the incentives of unemployed workers for reemployment using search models and semi-parametric econometric methods of reemployment. The incentives for reemployrnent can be increased by suspending the protective rules regarding labour mobility stipulated in the Finnish Unemployment insurance Act and reducing the benefits after a fixed period of unemployment. The econometric results support such an interpretation. The unemployment benefits have first a negative effect on the probability of becoming employed, but after three months this effect vanishes when the rules of the system become stricter.

JEL-codes: J64 J65 (search for similar items in EconPapers)
Date: 1993
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:6:y:1993:i:1:p:51-60

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