Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/85906
Authors: 
Lalive, Rafael
Year of Publication: 
2003
Series/Report no.: 
Tinbergen Institute Discussion Paper 03-063/3
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 that social interactions are about as important as the direct effects of the policy change.
Subjects: 
social interactions
social multiplier
unemployment
quasi-experiment.
JEL: 
C41
J64
J65
Document Type: 
Working Paper

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