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Unemployment duration and the duration of entitlement to unemployment benefits: an empirical study for Britain

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  • Elena Stancanelli

Abstract

The aim of this paper is to investigate the impact of the expected duration of unemployment benefits on the individual probability of leaving unemployment. The theory predicts that the probability of leaving unemployment will increase near the time of the expected exhaustion of unemployment insurance. Still a limited number of empirical studies is available for European countries. The data used for the analysis relate to Britain. The probability of leaving unemployment to take up a full-time job is distinguished from the probability of exiting into other states. It is concluded that although there is some evidence of spikes in the hazard rate near the time of expected benefit exhaustion, no statistically significant benefit exhaustion effect is found.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 31 (1999)
Issue (Month): 9 ()
Pages: 1043-1051

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Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1043-1051

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Cited by:
  1. Lalive, Rafael & van Ours, Jan C. & Zweimüller, Josef, 2004. "How Changes in Financial Incentives Affect the Duration of Unemployment," IZA Discussion Papers 1363, Institute for the Study of Labor (IZA).
  2. Simoes, Nadia, 2013. "Subsídio de desemprego: uma revisão da literatura teórica e empírica
    [Unemployment insurance: a survey]
    ," MPRA Paper 52332, University Library of Munich, Germany.
  3. Ott-Siim Toomet, 2005. "Does an Increase in Unemployment Income Lead to Longer Unemployment Spells? Evidence Using Danish Unemployment Assistance Data," Bank of Estonia Working Papers 2005-09, Bank of Estonia, revised 10 Oct 2005.
  4. Virve Ollikainen & Tomi Kyyrä, 2006. "To Search or Not to Search? The Effects of UI Benefit Extension for the Elderly Unemployed," Discussion Papers 400, Government Institute for Economic Research Finland (VATT).

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