Moving between Welfare Payments. The Case of Sickness Insurance for the Unemployed
AbstractThis study describes the probability of transition from unemployment with unemployment insurance (UI) to sickness with sickness insurance (SI), using a grouped proportional hazard duration model and 9 years of monthly panel data. The combination of duration-limited UI and the fact that SI rights do not depend on remaining UI, creates an incentive to apply for SI, which is strongest immediately before UI expires. Estimation shows that the sickness hazard increases by around 50% when UI is about to end. Data on the sickness spells reveal that those who were given SI shortly before UI expired, are more likely to fully exploit the maximum of 12 months SI.
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Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 04/2006.
Length: 35 pages
Date of creation: 14 Mar 2006
Date of revision:
Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
Unemployment insurance; sickness insurance; unemployment duration;
Find related papers by JEL classification:
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
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