nep-ias New Economics Papers
on Insurance Economics
Issue of 2006‒07‒02
one paper chosen by
Soumitra K Mallick
Indian Institute of Social Welfare and Bussiness Management

  1. Shortening the Potential Duration of Unemployment Benefits Does Not Affect the Quality of Post-Unemployment Jobs: Evidence from a Natural Experiment By Jan C. van Ours; Milan Vodopivec

  1. By: Jan C. van Ours (Tilburg University, CentER, CEPR and IZA Bonn:); Milan Vodopivec (World Bank and IZA Bonn)
    Abstract: This paper investigates how the potential duration of unemployment benefits affects the quality of post-unemployment jobs. It takes advantage of a natural experiment introduced by a change in Slovenia’s unemployment insurance law that substantially reduced the potential benefit duration. Although this reduction strongly increased job finding rates, the quality of the post-unemployment jobs remained unaffected: the paper finds that the law change had no effect on either the type of the contract (temporary vs. permanent), the duration of the postunemployment jobs, or the wage earned in this job.
    Keywords: unemployment insurance, potential benefit duration, job separation rates, post-unemployment wages
    JEL: C41 H55 J64 J65
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2171&r=ias

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