Benefit Entitlement and Unemployment Duration - The Role of Policy Endogeneity

Rafael Lalive and Josef Zweim�ller
Authors registered in the RePEc Author Service: Josef Zweimüller ()

No 112, IEW - Working Papers from Institute for Empirical Research in Economics - University of Zurich

Abstract: The potential duration of benefits is generally viewed as an important determinant of unemployment duration. This paper evaluates a unique policy change that prolonged entitlement to regular unemployment benefits from 30 weeks to a maximum of 209 weeks for elderly individuals in certain regions of Austria. In the evaluation, we explicitly account for the fact that the program was an endogenous policy response to a crisis affecting individuals with severe labor market problems. The main results are: (i) REBP reduced the transition rate to jobs by 17%; (ii) accounting for endogenous policy adoption is important and quantitatively significant.

Keywords: quasi-experiments; policy endogeneity; benefit entitlement; maximum benefit duration; unemployment duration; unemployment insurance (search for similar items in EconPapers)
JEL-codes: C41 J64 J65 (search for similar items in EconPapers)
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Citations: View citations in EconPapers (35)

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Related works:
Journal Article: Benefit entitlement and unemployment duration: The role of policy endogeneity (2004)
Working Paper: Benefit Entitlement and Unemployment Duration: The Role of Policy Endogeneity (2002)
Working Paper: Benefit Entitlement and Unemployment Duration: The Role of Policy Endogeneity (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:zur:iewwpx:112

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