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Does Unemployment Compensation Affect Unemployment Duration?

Forfattere:

Røed, Knut, Zhang, Tao

År:

2003

Referanse:

Economic Journal

Vol. 113, 190-206Nummer i serie: 113

Summary

We use a flexible hazard rate model with unrestricted spell duration and calendar time effects to analyse a dataset including all Norwegian unemployment spells during the 1990’s. The dataset provides a unique access to conditionally independent variation in unemployment compensation. We find that a marginal increase in compensation reduces the escape rate from unemployment significantly, irrespective of business cycle conditions and spell duration. The escape rate rises sharply in the months just prior to benefit exhaustion. While men are more responsive than women with respect to marginal changes in compensation, women are most responsive with respect to benefit exhaustion.

Nøkkelord:

Unemployment spells, business cycles, unemployment compensation, non-parametric duration analysis

JEL:

C41, J64

Prosjekt info:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 1203 - Sortering, utsatte grupper og arbeidsmarkedstiltak

Finansiering:

Forskningsrådet