The Effects of Reducing the Entitlement Period to Unemployment Insurance Benefits

Nynke De Groot () and Bas van der Klaauw
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Nynke De Groot: Free University Amsterdam

No 8336, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper exploits a substantial reform of the Dutch UI law to study the effect of the entitlement period on job finding and subsequent labor market outcomes. Using detailed administrative data covering the full population we find that reducing the entitlement period increases the job finding rate, but decreases the job quality. Unemployed workers accept more often temporary jobs with lower wages and fewer working hours. Therefore, they also change jobs more frequently. The reform did not affect total post-unemployment earnings indicating that the positive effects on job finding and job turnover cancel out the negative effects on job quality. We also observe a spike in job finding around benefits exhaustion even, although more modest, for individuals who do not experience a drop in benefits level when moving to welfare.

Keywords: difference-in-differences; job quality; job finding; unemployment benefits entitlement; duration model (search for similar items in EconPapers)
JEL-codes: C21 C41 J64 J65 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2014-07
New Economics Papers: this item is included in nep-eur, nep-ias, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published - published in: Labour Economics, 2019, 57, 195-208

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Related works:
Journal Article: The effects of reducing the entitlement period to unemployment insurance benefits (2019)
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