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How Changes in Unemployment Benefit Duration Affect the Inflow Into Unemployment

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  • Ours, J.C. van
  • Tuit, S.

    (Tilburg University, Center for Economic Research)

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    Abstract

    We study how changes in the maximum benefit duration affec the inow into unemployment in the Netherlands. Until August 2003, workers who became un- employed after age 57.5 were entitled to unemployment benefits until the age of 65, after which they would receive old age pensions. This characteristic made it attractive for workers to enter unemployment shortly after age 57.5 rather than shortly before. Indeed, we find a peak in the inow into unemployment for workers after age 57.5. From August 2003 onwards the maximum benefit durations were reduced. We find that shortly after 2003 the peak in the inow disappeared.

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    Bibliographic Info

    Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2010-07.

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    Date of creation: 2010
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    Handle: RePEc:dgr:kubcen:201007

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    Web page: http://center.uvt.nl

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    Cited by:
    1. Tuit, Sander & van Ours, Jan C., 2010. "How changes in unemployment benefit duration affect the inflow into unemployment," Economics Letters, Elsevier, vol. 109(2), pages 105-107, November.

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