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Shortening the Potential Duration of Unemployment Benefits Does Not Affect the Quality of Post-Unemployment Jobs: Evidence from a Natural Experiment

Jan van Ours () and Milan Vodopivec ()

No 2171, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates how the potential duration of unemployment benefits affects the quality of post-unemployment jobs. It takes advantage of a natural experiment introduced by a change in Slovenia’s unemployment insurance law that substantially reduced the potential benefit duration. Although this reduction strongly increased job finding rates, the quality of the post-unemployment jobs remained unaffected: the paper finds that the law change had no effect on either the type of the contract (temporary vs. permanent), the duration of the post-unemployment jobs, or the wage earned in this job.

Keywords: post-unemployment wages; unemployment insurance; job separation rates; potential benefit duration (search for similar items in EconPapers)
JEL-codes: C41 H55 J64 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ias, nep-lab and nep-pbe
Date: 2006-06
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