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Time-dependent effects of unemployment benefits

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  • Juha Kettunen

    (The Research Institute of the Finnish Economy)

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    Abstract

    This paper presents methods to estimate the effects of time-dependent covariates in parametric duration models using microeconomic data. In the Finnish system persons who are eligible for the benefits have a risk to lose them after the first three months. In addition the earnings-related unemployment allowances decrease 20 per cent after the first 100 days unemployment. Using Finnish data it is shown that unemployment benefits have a negative effect on the probability of becoming employed during the first months, but after that period the effect vanishes.

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    File URL: http://taloustieteellinenyhdistys.fi/images/stories/fep/f1994_2d.pdf
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    Bibliographic Info

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

    Volume (Year): 7 (1994)
    Issue (Month): 2 (Autumn)
    Pages: 120-129

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    Handle: RePEc:fep:journl:v:7:y:1994:i:2:p:120-129

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    Web page: http://www.taloustieteellinenyhdistys.fi
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    1. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
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    Cited by:
    1. Kettunen, Juha, 2002. "Labour mobility of unemployed workers," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 359-380, May.

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