Uusitalo, Roope () (Labour Institute for Economic Research) Verho, Jouko () (Department of Economics, University of Helsinki)
Abstract
In January 2003, the unemployment benefits in Finland were increased for workers with long employment histories. The average benefit increase was 15 per cent for the first 150 days of the unemployment spell. In this paper we evaluate the effect of the benefit increase on the duration of unemployment by comparing the changes in the re-employment hazard profiles among the unemployed who became eligible for the increased benefits to the changes in a comparison group whose benefit structure remained unchanged. We find that the benefit increase reduced the re-employment hazards at the beginning of the unemployment spell. The effect disappears after the eligibility period for the increased benefit expires.
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Publisher Info
Paper provided by IFAU - Institute for Labour Market Policy Evaluation in its series Working Paper Series with number
2007:21.
Length: 36 pages Date of creation: 20 Sep 2007 Date of revision: Handle: RePEc:hhs:ifauwp:2007_021
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