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Unemployment duration and unemployment insurance: a comparative analysis based on Scandinavian micro data

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  • Knut Røed
  • Peter Jensen
  • Anna Thoursie

Abstract

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 incentives and job search behaviour. Specifically, UI benefits are relatively more generous for low-income workers in Sweden than in Norway, leading to relatively longer unemployment 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 one in Norway and 0.5 in Sweden. Copyright 2008 , Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 60 (2008)
Issue (Month): 2 (April)
Pages: 254-274

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Handle: RePEc:oup:oxecpp:v:60:y:2008:i:2:p:254-274

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Cited by:
  1. Røed, Knut, 2012. "Active Unemployment Insurance," IZA Policy Papers, Institute for the Study of Labor (IZA) 41, Institute for the Study of Labor (IZA).
  2. Holmlund, Bertil, 2013. "What do labor market institutions do?," Working Paper Series, Uppsala University, Department of Economics 2013:23, Uppsala University, Department of Economics.
  3. Røed, Knut & Westlie, Lars, 2007. "Unemployment Insurance in Welfare States: Soft Constraints and Mild Sanctions," IZA Discussion Papers 2877, Institute for the Study of Labor (IZA).
  4. Fevang, Elisabeth & Hardoy, Inés & Røed, Knut, 2013. "Getting Disabled Workers Back to Work: How Important Are Economic Incentives?," IZA Discussion Papers 7137, Institute for the Study of Labor (IZA).

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