Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/34011
Authors: 
Jahn, Elke J.
Wagner, Thomas
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 2151
Abstract: 
Unemployment benefits, benefit duration, base period and qualifying period are constituent parameters of the unemployment insurance system in most OECD countries. From economic research we know that the amount and duration of unemployment benefits increase unemployment. To analyze the effects of the other two parameters we use a matching model with search frictions and show that there is a trade-off between the qualifying and the base period on the one hand and the amount and duration of the unemployment benefits on the other. A country that combines a high level of unemployment benefits with a long benefit duration can neutralize the effect on the equilibrium rate of unemployment with a long qualifying and/or a short base period.
Subjects: 
matching model
unemployment insurance
base period
qualifying period
labor market policy
JEL: 
J41
J64
J68
Document Type: 
Working Paper

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