Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/76573 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper No. 1077
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper studies the relevance of social interactions among the unemployed. Identification is based on a salient and selective extension of the potential duration of unemployment benefits. If social interactions are important, this policy change affects entitled individuals not only directly, but also indirectly by altering the duration of unemployment in the reference group. Moreover, this spillover effect of the policy should also be observed in the non-entitled group. Results indicate that there are strong indirect effects on the entitled, strong positive spillovers on the non-entitled, and the social interactions are about as important as the direct effects of the policy change.
Subjects: 
social interactions
social multiplier
unemployment
quasi-experiment
Document Type: 
Working Paper
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