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Title:Benefit Entitlement and Unemployment Duration: The Role of Policy Endogeneity PDF Logo
Authors:Lalive, Rafael
Zweimüller, Josef
Issue Date:2002
Series/Report no.:IZA Discussion paper series 492
Abstract:The potential duration of benefits is generally viewed as an important determinant of unemployment duration. This paper evaluates a unique policy change that prolonged entitlement to regular unemployment benefits from 30 weeks to a maximum of 209 weeks for elderly individuals in certain regions of Austria. In the evaluation, we explicitly account for the fact that the program was an endogenous policy response to a crisis affecting individuals with severe labor market problems. The main results are: (i) REBP reduced the transition rate to jobs by 17 %; (ii) accounting for endogenous policy adoption is important and quantitatively significant.
Subjects:quasi-experiments
policy endogeneity
benefit entitlement
maximum benefit duration
unemployment duration
unemployment insurance
JEL:J65
J64
C41
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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