Unemployment duration and Unemployment Insurance - A Comparative Analysis Based on Scandinavian Micro Data
Based on pooled register data from Norway and Sweden, we find that differences in unemployment duration patterns reflect dissimilarities in unemployment insurance (UI) systems in a way that convincingly establishes the link between economic incen-tives and job search behaviour. Specifically, UI benefits are relatively more generous for low-income workers in Sweden than in Norway, leading to relatively longer un-employment spells for low-income workers in Sweden. Based on the between-countries variation in replacement ratios, we find that the elasticity of the outflow rate from insured unemployment with respect to the replacement ratio is approximately 1 in Norway and 0.5 in Sweden.
Røed, Knut, Peter Jensen and Anna Thoursie
Unemployment spells, unemployment compensation, non-parametric duration analysis.
Prosjekt:1212 - Dagpenger og arbeidsmarkedstilpasning i Norden