Spreading Out the Payment of Unemployment Benefits: The Impact on Transitions to Employment

Maxime Le Bihan and Brice Fabre

Economie et Statistique / Economics and Statistics, 2026, issue 550, 3-22

Abstract: [eng] In October 2021, a reform of the method used to calculate unemployment benefits had the effect of simultaneously reducing the daily allowance while increasing the potential duration of eligibility for unemployment benefits for those with discontinuous employment histories. In this article, we demonstrate that this change of system has been followed by an acceleration in the return to employment of the benefit claimants affected: the proportion of their number finding a new job within six months of the end of their previous contract is now between 3.2 and 6.8 percentage points higher than it was before the reform. This trend has been driven by a rise in temporary contracts lasting less than six months. The more discontinuous an individual’s career before losing their latest job, the more substantial the effect. Additional survey data make it possible to profile the population affected by this change, revealing that they face greater financial pressure and adopt more wide-ranging job search strategies than the unaffected population.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:nse:ecosta:ecostat_2026_550_1

DOI: 10.24187/ecostat.2026.550.2145

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