Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/186046 
Year of Publication: 
2015
Citation: 
[Journal:] Swiss Journal of Economics and Statistics [ISSN:] 2235-6282 [Volume:] 151 [Issue:] 1 [Publisher:] Springer [Place:] Heidelberg [Year:] 2015 [Pages:] 3-25
Publisher: 
Springer, Heidelberg
Abstract: 
This paper discusses the effects of a higher unemployment benefit replacement rate on unemployment durations, employment and earnings. A reform of the Swiss unemployment insurance in July 2003 increased the replacement rate by up to 5.88 ppt for individuals who earned between 3,536 and 4,340 CHF and have no children, while it did not change the replacement rate for all other unemployed persons. This allows to study the effects of a higher replacement rate adopting a difference-in-differences (DiD) approach. The change in the replacement rate increased unemployment durations by 3.1 % – or roughly one week – for the treatment group. Women tend to react stronger than men. There is no effect of the level of the replacement rate on employment probabilities or earnings after the unemployment spell is finished.
Subjects: 
unemployment durations
unemployment insurance
replacement rate
post-unemployment outcomes
JEL: 
J21
J64
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size
197.43 kB





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