Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20421 
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion Papers No. 1181
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
In 1998 the Slovenian UI system was drastically reformed. The reform reduced the potential duration of unemployment benefits substantially and simultaneously improved employment services offered to, and monitoring of, the recipients. We find that the reduction in potential benefit duration had a positive effect on the exit rate out of unemployment – both to employment and to other destinations – at various durations of unemployment spells and for many categories of unemployed workers. We also identify a clear spike in the exit rate out of unemployment in the month unemployment benefits expire (and a smaller spike in the month thereafter), and for males an increase of job-finding rate in the third month of unemployment, a likely consequence of a reduction of the level of benefit that occurs at that point. Interestingly, post-unemployment wages of recipients were not affected after the change of the law, suggesting that higher job-finding rates following the reduction of benefits were not produced by reduced reservation wages (higher acceptance probability) but rather more effective job-search activity.
Subjects: 
unemployment insurance
potential benefit duration
job finding rates
postunemployment wages
JEL: 
H55
J64
J65
C41
Document Type: 
Working Paper

Files in This Item:
File
Size
366.81 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.