How Changes in Unemployment Benefit Duration Affect the Inflow into Unemployment

Jan van Ours and Sander Tuit ()
Additional contact information
Sander Tuit: Tilburg University

No 4691, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study how changes in the maximum benefit duration affect the inflow into unemployment in the Netherlands. Until August 2003, workers who became unemployed after age 57.5 were entitled to unemployment benefits until the age of 65, after which they would receive old age pensions. This characteristic made it attractive for workers to enter unemployment shortly after age 57.5 rather than shortly before. Indeed, we find a peak in the inflow into unemployment for workers after age 57.5. From August 2003 onwards the maximum benefit durations were reduced. We find that shortly after 2003 the peak in the inflow disappeared.

Keywords: unemployment inflow; potential benefit duration; unemployment insurance (search for similar items in EconPapers)
JEL-codes: H55 J64 J65 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2010-01
New Economics Papers: this item is included in nep-ias and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

Published - published in: Economics Letters, 2010, 109 (2), 105-107

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Related works:
Working Paper: How Changes in Unemployment Benefit Duration Affect the Inflow Into Unemployment (2010)
Working Paper: How Changes in Unemployment Benefit Duration Affect the Inflow Into Unemployment (2010)
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