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The Exhaustion of Unemployment Benefits in Belgium: Does it Enhance the Probability of Employment?

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  • Cockx, Bart

    ()
    (Ghent University)

  • Ries, Jean

    ()
    (Université catholique de Louvain)

Abstract

In Belgium unemployment insurance benefits can only exhaust for one category of workers: partners of workers with (replacement) labour income (mostly women) may loose their entitlement after an unemployment duration ranging from two to eight years, depending on individual characteristics. We contrast three propensity score matching estimators of the impact of benefit exhaustion on the probability of employment: a standard, a before-after and an IV matching estimator. We conclude that benefit expiration is anticipated as from the moment at which the worker is notified, three months in advance, and that it gradually increases the employment rate up to 25 percentage points 14 months after benefit withdrawal.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1177.

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Length: 57 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1177

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Keywords: unemployment insurance; programme evaluation; before-after estimator; nonparametric methods;

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Citations

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Cited by:
  1. David R. Howell & Miriam Rehm, 2009. "Unemployment Compensation and High European Unemployment: A Reassessment with New Benefit Indicators," Working Papers, Political Economy Research Institute, University of Massachusetts at Amherst wp201, Political Economy Research Institute, University of Massachusetts at Amherst.
  2. Lalive, R. & Ours, J.C. van & Zweimüller, J., 2004. "How Changes in Financial Incentives Affect the Duration of Unemployment," Discussion Paper, Tilburg University, Center for Economic Research 2004-86, Tilburg University, Center for Economic Research.
  3. Christian, GOEBEL, 2006. "The effect of temporary employment subsidies on employment duration," Discussion Papers (ECON - Département des Sciences Economiques), Université catholique de Louvain, Département des Sciences Economiques 2006035, Université catholique de Louvain, Département des Sciences Economiques.
  4. Cockx, Bart & Dejemeppe, Muriel, 2012. "Monitoring job search effort: An evaluation based on a regression discontinuity design," Labour Economics, Elsevier, Elsevier, vol. 19(5), pages 729-737.
  5. Cockx, Bart & Dejemeppe, Muriel, 2010. "The Threat of Monitoring Job Search: A Discontinuity Design," IZA Discussion Papers, Institute for the Study of Labor (IZA) 5337, Institute for the Study of Labor (IZA).
  6. Cockx, Bart & Dejemeppe, Muriel, 2007. "Is the Notification of Monitoring a Threat to the Unemployed? A Regression Discontinuity Approach," IZA Discussion Papers, Institute for the Study of Labor (IZA) 2854, Institute for the Study of Labor (IZA).
  7. Simoes, Nadia, 2013. "Subsídio de desemprego: uma revisão da literatura teórica e empírica
    [Unemployment insurance: a survey]
    ," MPRA Paper, University Library of Munich, Germany 52332, University Library of Munich, Germany.

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