A comparative analysis on the relationship between benefits generosity, search requirements and unemployment duration

Lorenzo Corsini

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: We develop a comparative analysis on the effect that unemployment insurance schemes have on unemployment duration. We consider three aspects through which unemployment insurance schemes affect duration: 1) liquidity constraints mitigation from income support can increase duration, 2) employment services at the time of registration can increase initial re-employment probability and 3) employment counseling and monitoring of job search can increase re-employment probability during the whole unemployment spell. We describe how these aspects are present in schemes of various European countries and we assess whether they can explain the overall effect that benefits display on unemployment duration. We perform first a duration analysis and then, to tackle the issue of self-selection into participation, a propensity score matching estimation. The results confirm our interpretation of the three mechanisms so that they effectively concur in the determination of the effect that benefits have on unemployment duration.

Keywords: unemployment insurance; job search; 2unemployment duration; duration analysis; propensity score matching. (search for similar items in EconPapers)
JEL-codes: C41 I38 J64 J65 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2013
New Economics Papers: this item is included in nep-ias and nep-lab
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