A search theoretical analysis of the Finnish unemployment insurance system

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

Finnish Economic Papers, 1992, vol. 5, issue 2, 129-138

Abstract: This paper studies the effects of the Finnish unemployment insurance on the re-employment of unemployed workers using a search theoretical framework. It is well known that the unemployment benefits have a negative effect on the re-employment. In this paper it is shown that the re-employment probability can be increased by lowering the costs of re-employment. Furthermore, it is shown that the qualifying waiting period has only a slight positive effect on the hazard function, but removing of the mobility rules and reduction of benefits after a fixed period of unemployment substantially increase the re-employment probability.

JEL-codes: J65 (search for similar items in EconPapers)
Date: 1992
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:5:y:1992:i:2:p:129-138

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