Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161107
Authors: 
Kyyrä, Tomi
Pesola, Hanna
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10484
Abstract: 
This paper analyzes the effects of unemployment insurance (UI) benefits on unemployment exits and subsequent labor market outcomes. We exploit a piecewise linear relationship between the previous wage and UI benefits in Finland to identify the causal effects of the benefit level by using a regression kink design. According to our findings, higher benefits lengthen nonemployment spells and decrease time spent in part-time unemployment, and thus result in more full-time unemployment. Also the re-employment probability and post-unemployment wage are negatively affected. The results for the duration of the first post-unemployment job are not conclusive, but in total both employment and earnings in the two years following the beginning of the unemployment spell decrease with higher benefits.
Subjects: 
unemployment duration
job match quality
regression kink design
unemployment insurance
JEL: 
J64
J65
Document Type: 
Working Paper

Files in This Item:
File
Size
458.53 kB





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