Unemployment Duration, Incentives and Institutions - A Micro-Econometric Analysis Based on Scandinavian Data

Knut Røed (), Peter Jensen and Anna Thoursie ()
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Anna Thoursie: Swedish Trade Union Confederation, Stockholm, Sweden

No 3/2002, Working Paper Series from Stockholm University, Swedish Institute for Social Research

Abstract: Based on a combined register database for Norwegian and Swedish unemployment spells, we use the ‘between-countries-variation’ in the unemployment insurance systems to identify causal effects. The elasticity of the job hazard rate with respect to the benefit replacement ratio is around -1.0 in Norway and -0.5 in Sweden. The limited benefit duration period in Sweden has a large positive impact on the hazard rate, despite generous renewal options through participation in labour market programs. Compulsory program participation seems to operate as a ‘stick’, rather than a ‘carrot’, and is therefore an efficient tool for counteracting moral hazard problems in the benefit system.

Keywords: Unemployment spells; unemployment compensation; non-parametric duration analysis. (search for similar items in EconPapers)
JEL-codes: C41 J64 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2002-05-14
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (1)

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Working Paper: Unemployment Duration, Incentives and Institutions - A Micro-Econometric Analysis Based on Scandinavian Data (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sofiwp:2002_003

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