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Measuring The Changing Generosity Of Unemployment Benefits: Beyond Existing Indicators

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  • GAYLE ALLARD

    ()
    (Instituto de Empresa)

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    Abstract

    There has long been a consensus that generous unemployment benefits probably raise unemployment rates.The link has been difficult to demonstrate, since existing indicators on the generosity of unemployment benefits overlook key aspects of the system that may influence worker response.The author develops a new indicator for unemployment benefits in 21 countries in the 1950-2003 time period which combines the amount of the subsidy with their tax treatment, their duration and the conditions that must be met in order to collect them.The new indicator shows that benefit generosity has indeed risen over time and differs greatly among countries, opening up future directions for empirical research.

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    File URL: http://latienda.ie.edu/working_papers_economia/WP05-18.pdf
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    Bibliographic Info

    Paper provided by Instituto de Empresa, Area of Economic Environment in its series Working Papers Economia with number wp05-18.

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    Length: 20 pages
    Date of creation: Apr 2005
    Date of revision:
    Handle: RePEc:emp:wpaper:wp05-18

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    1. John P Martin, 1998. "What Works Among Active Labour Market Policies: Evidence from OECD Countries' Experiences," RBA Annual Conference Volume, in: Guy Debelle & Jeff Borland (ed.), Unemployment and the Australian Labour Market Reserve Bank of Australia.
    2. Olivier Blanchard & Justin Wolfers, 1999. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," NBER Working Papers 7282, National Bureau of Economic Research, Inc.
    3. Lazear, Edward P, 1990. "Job Security Provisions and Employment," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 699-726, August.
    4. Boeri, Tito, 1998. "Enforcement of Employment Security Regulations, On-The-Job Search and Unemployment Duration," CEPR Discussion Papers 1850, C.E.P.R. Discussion Papers.
    5. Bertola, Giuseppe & Rogerson, Richard, 1996. "Institutions and Labour Reallocation," CEPR Discussion Papers 1519, C.E.P.R. Discussion Papers.
    6. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
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    Cited by:
    1. Flaig, Gebhard & Rottmann, Horst, 2009. "Labour Market Institutions and the Employment Intensity of Output Growth," Munich Reprints in Economics 20370, University of Munich, Department of Economics.
    2. Eichhorst, Werner & Feil, Michael & Braun, Christoph, 2008. "What have we learned? Assessing labor market institutions and indicators," IAB Discussion Paper 200822, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Stéphane Pallage & Lyle Scruggs & Christian Zimmermann, 2009. "Measuring Unemployment Insurance Generosity," Cahiers de recherche 0921, CIRPEE.
    4. Gebhard Flaig & Horst Rottmann, 2011. "Labour Market Institutions and Unemployment. An International Comparison," CESifo Working Paper Series 3558, CESifo Group Munich.
    5. Sophie Guilloux & Enisse Kharroubi, 2008. "Some preliminary evidence on the globalization-inflation nexus," Globalization and Monetary Policy Institute Working Paper 18, Federal Reserve Bank of Dallas.
    6. Rottmann, Horst & Flaig, Gebhard, 2009. "Arbeitsmarktinstitutionen und die langfristige Entwicklung der Arbeitslosigkeit: Empirische Ergebnisse für 19 OECD-Länder," OTH im Dialog: Weidener Diskussionspapiere 17, University of Applied Sciences Amberg-Weiden (OTH).

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