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Job Search Requirements for Older Unemployed: Transitions to Employment, Early Retirement and Disability Benefits

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  • Hans Bloemen

    (VU University Amsterdam)

  • Stefan Hochguertel

    (VU University Amsterdam)

  • Marloes Lammers

    (VU University Amsterdam)

Abstract

In this paper, we use a recent policy change in the Netherlands to study how changes in search requirements for the older unemployed affect their transition rates to employment, early retirement and sickness/disability benefits. The reform, becoming effective on January 1st 2004, required the elderly to formally report their job search efforts to the employment office in order to avoid a (temporary) cut in benefits. Before the new law was passed, unemployed were allowed to stop all search activity at the moment they turned 57.5. Estimating various duration models using difference-in-difference and regression discontinuity approaches, we find that for several groups of individuals that were affected by the policy change, the stricter search requirements did significantly increase their entry rate into employment. However, we also find evidence of a higher outflow to sickness/disability insurance schemes, a presumably unwanted side-effect of the policy change.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-008/3.

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Date of creation: 13 Jan 2011
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Handle: RePEc:dgr:uvatin:20110008

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Web page: http://www.tinbergen.nl

Related research

Keywords: Duration Analysis; Policy Evaluation; Search effort; Substitution;

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Cited by:
  1. Staubli, Stefan & Zweimüller, Josef, 2011. "Does Raising the Retirement Age Increase Employment of Older Workers?," CEPR Discussion Papers 8510, C.E.P.R. Discussion Papers.
  2. Pierre Koning & Max Raterink, 2013. "Re-employment Rates of Older Unemployed Workers: Decomposing the Effect of Birth Cohorts and Policy Changes," De Economist, Springer, vol. 161(3), pages 331-348, September.
  3. Nicholas Lawson, 2014. "Social Program Substitution and Optimal Policy," AMSE Working Papers 1417, Aix-Marseille School of Economics, Marseille, France, revised 16 May 2014.
  4. Sergi Jimenez-Martin & Judit Castello, 2013. "Business cycle and spillover effects on pre-retirement behavior in Spain," IZA Journal of European Labor Studies, Springer, vol. 2(1), pages 1-23, December.
  5. Alfonso R. Sánchez Martín & Jose Ignacio García Pérez & Sergi Jiménez Martín, 2014. "Delaying the normal and early retirement ages in Spain: behavioural and welfare consequences for employed and unemployed workers," Working Papers 14.04, Universidad Pablo de Olavide, Department of Economics.
  6. Lukas Inderbitzin & Stefan Staubli & Josef Zweimüller, 2013. "Extended Unemployment Benefits and Early Retirement: Program Complementarity and Program Substitution," Economics working papers 2013-06, Department of Economics, Johannes Kepler University Linz, Austria.
  7. Hairault, Jean-Olivier, 2012. "Pour l’emploi des seniors — Assurance chômage et licenciements," Opuscules du CEPREMAP, CEPREMAP, number 28, May.
  8. Hullegie, P.G.J., 2012. "Essays on health and labor economics," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5637283, Tilburg University.
  9. Reiso, Katrine Holm, 2014. "The Effect of Welfare Reforms on Benefit Substitution," Discussion Paper Series in Economics 22/2014, Department of Economics, Norwegian School of Economics.
  10. Staubli, Stefan & Zweimüller, Josef, 2013. "Does raising the early retirement age increase employment of older workers?," Journal of Public Economics, Elsevier, vol. 108(C), pages 17-32.
  11. Nicholas Lawson, 2014. "Social Program Substitution and Optimal Policy," Working Papers halshs-00993127, HAL.
  12. Hullegie, P.G.J. & Ours, J.C. van, 2013. "Seek and Ye shall Find: How Search Requirements Affect Job Finding Rates of Older Workers," Discussion Paper 2013-028, Tilburg University, Center for Economic Research.
  13. Hullegie, Patrick & van Ours, Jan C., 2013. "Seek and Ye Shall Find: How Search Requirements Affect Job Finding Rates of Older Workers," IZA Discussion Papers 7400, Institute for the Study of Labor (IZA).

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