Unemployment Duration, Unemployment Benefits, and Labour Market Programmes in Sweden
AbstractStandard search theory and some empirical evidence suggest that an unemployed individual's probability of entering employment increases as they approach the time when unemployment benefits are due to expire. This pattern may not carry over to countries such as Sweden, where labour market programmes are targeted at the long-term unemployed at risk of benefit exhaustion. This paper examines movements out of unemployment using data on unemployed individuals in Sweden. A semi-parametric competing risks model for transitions to employment, labour market programmes and non-participation is estimated. There is some evidence that the exit rate from unemployment to employment increases as benefit exhaustion is approached.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1200.
Date of creation: Jun 1995
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Find related papers by JEL classification:
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
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- David Card & Raj Chetty & Andrea Weber, 2007.
"The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?,"
American Economic Review,
American Economic Association, vol. 97(2), pages 113-118, May.
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- Barbara Sianesi, 2002. "An evaluation of the Swedish system of active labour market programmes in the 1990s," IFS Working Papers W02/01, Institute for Fiscal Studies.
- Tomi Kyyrä & Pasi Holm & Juha Rantala, 1998. "Business Cycle, unemployment Trap and Effects of Economic Incentives on Job Finding Probability," Discussion Papers 175, Government Institute for Economic Research Finland (VATT).
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