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Does an Increase in Unemployment Income Lead to Longer Unemployment Spells? Evidence Using Danish Unemployment Assistance Data

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  • Ott-Siim Toomet

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    Abstract

    Danish unemployment assistance depends on age; it increases by 70% when unemployed individuals turn 25. This feature is used to identify the impact of income on the unemployment-to-employment hazard rate. A mixed proportional hazard framework based on a 10% representative Danish registry data set is used. The results indicate that the income effect for females is negative and significant, corresponding to an income elasticity of -0.4. The effect for males is positive but insignificant.

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    File URL: http://www.eestipank.info/pub/en/dokumendid/publikatsioonid/seeriad/uuringud/_2005/_9_2005/_wp_905.pdf
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    Bibliographic Info

    Paper provided by Bank of Estonia in its series Bank of Estonia Working Papers with number 2005-09.

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    Length: 41 p
    Date of creation: 10 Oct 2005
    Date of revision: 10 Oct 2005
    Publication status: published
    Handle: RePEc:eea:boewps:wp2005-09

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    Postal: Estonia bld. 13, 15095 Tallinn, ESTONIA
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    Related research

    Keywords: welfare benefits; incentive effect; unemployment duration;

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    Cited by:
    1. Ott Toomet, 2008. "Threat Effect Of The Labour Market Programs In Denmark: Evidence From A Quasi-Experiment," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 62, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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