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

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  • Bart, COCKX

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • Jean, RIES

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

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 a 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 Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2004016.

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Length: 53
Date of creation: 01 Jun 2004
Date of revision:
Handle: RePEc:ctl:louvir:2004016

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Keywords: Unemployment insurance; benefit exhaustion; programme evaluation; before-after estimator; nonparametric methods;

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Citations

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Cited by:
  1. Lalive, Rafael & van Ours, Jan C. & Zweimüller, Josef, 2004. "How Changes in Financial Incentives Affect the Duration of Unemployment," IZA Discussion Papers 1363, Institute for the Study of Labor (IZA).
  2. 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.
  3. David R. Howell & Miriam Rehm, 2009. "Unemployment Compensation and High European Unemployment: A Reassessment with New Benefit Indicators," Working Papers wp201, Political Economy Research Institute, University of Massachusetts at Amherst.
  4. 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.
  5. Cockx, Bart & Dejemeppe, Muriel, 2007. "Is the Notification of Monitoring a Threat to the Unemployed? A Regression Discontinuity Approach," IZA Discussion Papers 2854, Institute for the Study of Labor (IZA).
  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 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) 2006035, Université catholique de Louvain, Département des Sciences Economiques.

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