Bennmarker, Helge () (Institute for Labour Market Policy Evaluation) Carling, Kenneth () (Institute for Labour Market Policy Evaluation) Holmlund, Bertil () (Department of Economics)
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In 2001 and 2002, Sweden introduced several unemployment insurance reforms. A major innovation in the first reform was the introduction of a two-tiered benefit structure for some unemployed individuals. This system involved supplementary compensation during the first 20 weeks of unemployment. The 2002 reform retained the two-tiered benefit structure but involved also substantial benefit hikes for spells exceeding 20 weeks. This paper examines how these reforms affected transitions from unemployment to employment. We take advantage of the fact that the reforms had quasi-experimental features where the “treatments” differed considerably among unemployed individuals. We find that the reforms had strikingly different effects on job finding among men and women. The two reforms in conjunction are estimated to have increased the expected duration of unemployment among men but to have decreased the duration of unemployment among women. The overall effect on the duration of unemployment is not statistically different from zero. However, the reforms reduced job finding among males who remained unemployed for more than 20 weeks.
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Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number
2005:15.
Length: 37 pages Date of creation: 29 Mar 2005 Date of revision: Publication status: Published in LABOUR, 2007, pages 85-120. Handle: RePEc:hhs:uunewp:2005_015
Contact details of provider: Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden Phone: + 46 18 471 25 00 Fax: + 46 18 471 14 78 Email: Web page: http://www.nek.uu.se/ More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Hamermesh, Daniel S, 1980.
"Unemployment Insurance and Labor Supply,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(3), pages 517-27, October.
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