How Do Different Entitlements to Unemployment Benefits Affect the Transitions from Unemployment into Employment?

No 3016, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: In Portugal duration of benefits is exclusively age determined while replacement rates are to all intents and purposes uniform. We exploit differences in potential maximum duration of benefits for nearly matched pairs of individuals who differ in age by one year and in potential maximum duration of benefits by three months. In specifications that take account of unobserved individual heterogeneity, while controlling for pure age effects on escape rates, we find that lower maximum benefit duration is associated with substantially higher quarterly rates of job finding in the range 53 to 106 percent.

Keywords: unemployment benefits; unemployment duration; job search (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab and nep-ltv
Date: Written 2007-08
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