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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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Citations

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Cited by:
  1. 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.
  2. Cockx, Bart & Dejemeppe, Muriel, 2010. "The Threat of Monitoring Job Search: A Discontinuity Design," IZA Discussion Papers 5337, Institute for the Study of Labor (IZA).
  3. David R. Howell & Miriam Rehm, 2009. "Unemployment Compensation and High European Unemployment: A Reassessment with New Benefit Indicators," Working Papers, Political Economy Research Institute, University of Massachusetts at Amherst wp201, Political Economy Research Institute, University of Massachusetts at Amherst.
  4. 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.
  5. Lalive, Rafael & van Ours, Jan C & Zweimüller, Josef, 2005. "How Changes in Financial Incentives Affect the Duration of Unemployment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4986, C.E.P.R. Discussion Papers.
  6. Cockx, Bart & Dejemeppe, Muriel, 2012. "Monitoring job search effort: An evaluation based on a regression discontinuity design," Labour Economics, Elsevier, Elsevier, vol. 19(5), pages 729-737.
  7. 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.

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