Effects of a Higher Replacement Rate on Unemployment Durations, Employment, and Earnings
Beatrix Eugster ()
Swiss Journal of Economics and Statistics (SJES), 2015, vol. 151, issue I, 3-25
This paper discusses the effects of a higher unemployment benefit replacement rate on unemployment durations, employment and earnings. A reform of the Swiss unemployment insurance in July 2003 increased the replacement rate by up to 5.88 ppt for individuals who earned between 3,536 and 4,340 CHF and have no children, while it did not change the replacement rate for all other unemployed persons. This allows to study the effects of a higher replacement rate adopting a difference-in-differences (DiD) approach. The change in the replacement rate increased unemployment durations by 3.1 % – or roughly one week – for the treatment group. Women tend to react stronger than men. There is no effect of the level of the replacement rate on employment probabilities or earnings after the unemployment spell is finished.
Keywords: unemployment durations; unemployment insurance; replacement rate; post-unemployment outcomes (search for similar items in EconPapers)
JEL-codes: J21 J64 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: Effects of a higher replacement rate on unemployment durations, employment, and earnings (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ses:arsjes:2015-i-1
Access Statistics for this article
Swiss Journal of Economics and Statistics (SJES) is currently edited by Rafael Lalive
More articles in Swiss Journal of Economics and Statistics (SJES) from Swiss Society of Economics and Statistics (SSES) Contact information at EDIRC.
Bibliographic data for series maintained by Peter Steiner ().