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

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  • Bart Cockx
  • Jean Ries

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 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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Cited by:
  1. David R. Howell & Miriam Rehm, 2009. "Unemployment compensation and high European unemployment: a reassessment with new benefit indicators," Oxford Review of Economic Policy, Oxford University Press, vol. 25(1), pages 60-93, Spring.
  2. Bart Cockx & Muriel Dejemeppe, 2007. "Is the Notification of Monitoring a Threat to the Unemployed? A Regression Discontinuity Approach," CESifo Working Paper Series 2042, CESifo Group Munich.
  3. 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.
  4. Cockx, Bart & Dejemeppe, Muriel, 2012. "Monitoring job search effort: An evaluation based on a regression discontinuity design," Labour Economics, Elsevier, vol. 19(5), pages 729-737.
  5. Lalive, R. & Ours, J.C. van & Zweimüller, J., 2004. "How Changes in Financial Incentives Affect the Duration of Unemployment," Discussion Paper, Tilburg University, Center for Economic Research 2004-86, Tilburg University, Center for Economic Research.
  6. B. Cockx & M. Dejemeppe, 2010. "The Threat of Monitoring Job Search. A Discontinuity Design," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium, Ghent University, Faculty of Economics and Business Administration 10/685, Ghent University, Faculty of Economics and Business Administration.
  7. Christian, GOEBEL, 2006. "The effect of temporary employment subsidies on employment duration," Discussion Papers (ECON - Département des Sciences Economiques), Université catholique de Louvain, Département des Sciences Economiques 2006035, Université catholique de Louvain, Département des Sciences Economiques.

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