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Increasing incentives for reemployment

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  • Juha Kettunen

    (The Research institute of the Finnish Economy)

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    Abstract

    This paper studies the incentives of unemployed workers for reemployment using search models and semi-parametric econometric methods of reemployment. The incentives for reemployrnent can be increased by suspending the protective rules regarding labour mobility stipulated in the Finnish Unemployment insurance Act and reducing the benefits after a fixed period of unemployment. The econometric results support such an interpretation. The unemployment benefits have first a negative effect on the probability of becoming employed, but after three months this effect vanishes when the rules of the system become stricter.

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    File URL: http://taloustieteellinenyhdistys.fi/images/stories/fep/f1993_1f.pdf
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    Bibliographic Info

    Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

    Volume (Year): 6 (1993)
    Issue (Month): 1 (Spring)
    Pages: 51-60

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    Handle: RePEc:fep:journl:v:6:y:1993:i:1:p:51-60

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    Web page: http://www.taloustieteellinenyhdistys.fi
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    1. Charles W. Calomiris & R. Glenn Hubbard, 1988. "Firm Heterogeneity, Internal Finance, and `Credit Rationing'," NBER Working Papers 2497, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Erkki Koskela & Roope Uusitalo, 2003. "The Un-Intended Convergence: How the Finnish Unemployment Reached the European Level," CESifo Working Paper Series 878, CESifo Group Munich.
    2. Kettunen, Juha, 2002. "Labour mobility of unemployed workers," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 359-380, May.
    3. Fatma El-Hamidi, 2006. "Why Does the MENA Region Have Such High Unemployment Rates?," Working Papers 270, University of Pittsburgh, Department of Economics, revised Sep 2006.
    4. Kettunen, Juha, 1996. "Duration-dependent features of unemployment insurance," Economics Letters, Elsevier, vol. 51(1), pages 115-121, April.
    5. Saarela, Jan, 2006. "Replacement rates and labour market behaviour," Socio-Economic Planning Sciences, Elsevier, vol. 40(3), pages 187-211, September.

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