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The Non Take-up of an Unemployment Insurance Reform in France

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  • Sylvie Blasco

    (Crest)

Abstract

On July 2001 a more generous unemployment insurance system was introduced in France.Those who were registered at the national unemployment agency at the moment of thereform could choose between staying in the former system and switching to the new one.This paper deals with the selection problem. To explain non participation, we propose atheoretical stationary job search model with several search channels, endogenous searche ort and psychological and time costs associated with the use of the public channel.Because of data availability, we estimate the non take-up rate and identify the stayingpopulation using defective duration methods.We nd a signi cant non take-up rate smallerthan 10% and evidence of self-selection. Stigma, informational issues and expectation of ashort unemployment spell are found to explain non participation.

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File URL: http://www.crest.fr/images/doctravail/2008-14.pdf
File Function: Crest working paper version
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Bibliographic Info

Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2008-14.

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Length: 40
Date of creation: 2008
Date of revision:
Handle: RePEc:crs:wpaper:2008-14

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