Analysing the relationship between unemployment benefits and unemployment duration

Laura Južnik Rotar () and Sabina Krsnik
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Laura Južnik Rotar: Faculty of Economics and Informatics, University of Novo Mesto, Slovenia
Sabina Krsnik: Faculty of Health Sciences, University of Novo Mesto, Slovenia

Society and Economy, 2020, vol. 42, issue 3, 280-297

Abstract: The aim of this paper is to analyse the relationship between unemployment benefits and durations of unemployment with respect to different approaches in social policy. The hypothesis of the research is that unemployment benefits negatively affect the duration of unemployment. An analysis of the relationship concerning unemployment benefits and duration of unemployment within the European Union Member States (EU-28) between 2006–2018 using panel data regression approach was conducted. The sample was split into sub-samples in order to get more homogeneous groups of EU-28 countries. Estimation results suggest that the more generous a social policy, the more prevalent the negative relationship between unemployment duration and unemployment benefits. Our results also revealed that the better the economic situation, the less pressure is put on unemployment benefits and on the duration of unemployment.

Keywords: labour market; unemployment duration; unemployment benefits; social policy; EU (search for similar items in EconPapers)
JEL-codes: C51 J64 J68 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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