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dc.contributor.authorFredriksson, Peteren_US
dc.contributor.authorSöderström, Martinen_US
dc.date.accessioned2008-09-02en_US
dc.date.accessioned2010-07-07T11:31:30Z-
dc.date.available2010-07-07T11:31:30Z-
dc.date.issued2008en_US
dc.identifier.piurn:nbn:de:101:1-2008070264en_US
dc.identifier.urihttp://hdl.handle.net/10419/35018-
dc.description.abstractWe examine the relationship between unemployment benefits and unemployment using Swedish regional data. To estimate the effect of an increase in unemployment insurance (UI) on unemployment we exploit the ceiling on UI benefits. The benefit ceiling, coupled with the fact that there are regional wage differentials, implies that the generosity of UI varies regionally. More importantly, the actual generosity of UI varies within region over time due to variations in the benefit ceiling. We find fairly robust evidence suggesting that the actual generosity of UI does matter for regional unemployment. Increases in the actual replacement rate contribute to higher unemployment as suggested by theory. We also show that removing the wage cap in UI benefit receipt would reduce the dispersion of regional unemployment. This result is due to the fact that low unemployment regions tend to be high wage regions where the benefit ceiling has a greater bite. Removing the benefit ceiling thus implies that the actual generosity of UI increases more in low unemployment regions.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 3570en_US
dc.subject.jelJ64en_US
dc.subject.ddc330en_US
dc.subject.keywordUnemploymenten_US
dc.subject.keywordunemployment insuranceen_US
dc.subject.keywordunemployment dispersionen_US
dc.subject.stwArbeitslosenversicherungen_US
dc.subject.stwArbeitslosigkeiten_US
dc.subject.stwRegionale Disparitäten_US
dc.subject.stwSchwedenen_US
dc.titleDo unemployment benefits increase unemployment? New evidence on an old questionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn572105886en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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