Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101937
Authors: 
De Groot, Nynke
van der Klaauw, Bas
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8336
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.
Subjects: 
unemployment benefits entitlement
job finding
job quality
difference-in-differences
duration model
JEL: 
J64
J65
C21
C41
Document Type: 
Working Paper

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