Base Period, Qualifying Period and the Equilibrium Rate of Unemployment

Elke Jahn and Thomas Wagner

No 43, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: Unemployment benefits, benefit duration, base period and qualifying period are constituent parameters of the unemployment insurance system in most OECD countries. From economic research we know that the amount and duration of unemployment benefits increase unemployment. To analyze the effects of the other two parameters we use a matching model with search frictions and show that there is a trade-off between the qualifying and the base period on the one hand and the amount and duration of the unemployment benefits on the other. A country that combines a high level of unemployment benefits with a long benefit duration can neutralize the effect on the equilibrium rate of unemployment with a long qualifying and/or a short base period.

Keywords: Unemployment insurance; base period; qualifying period (search for similar items in EconPapers)
JEL-codes: J41 J64 J68 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Base period, qualifying period and the equilibrium rate of unemployment (2006)
Working Paper: Base Period, Qualifying Period and the Equilibrium Rate of Unemployment (2006)
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