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The Exhaustion of Unemployment Benefits in Belgium. Does it Enhance the Probability of Employment?

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Author Info
Bart Cockx ()
Jean Ries ()

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Abstract

In Belgium unemployment insurance benefits can only exhaust for one category of workers: partners of workers with (replacement) labour income (mostly women) may loose their entitlement after an unemployment duration ranging from two to eight years, depending on individual characteristics. We contrast three propensity score matching estimators of the impact of benefit exhaustion on the probability of employment : a standard, a before-after and an IV matching estimator. We conclude that benefit expiration is anticipated as from the moment at which the worker is notified, three months in advance, and that it gradually increases the employment rate up to 25 percentage points 14 months after benefit withdrawal.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 1226.

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Date of creation: 2004
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Handle: RePEc:ces:ceswps:_1226

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Keywords: unemployment insurance; programme evaluation; before-after estimator; nonparametric methods;

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Lalive, Rafael & van Ours, Jan C. & Zweimueller, Josef, 2004. "How Changes in Financial Incentives Affect the Duration of Unemployment," IZA Discussion Papers 1363, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Christian, GOEBEL, 2006. "The effect of temporary employment subsidies on employment duration," Discussion Papers (ECON - Département des Sciences Economiques) 2006035, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
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