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How Do Different Entitlements to Unemployment Benefits Affect the Transitions from Unemployment into Employment?

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Author Info
John T. Addison () (Queen’s University Belfast, University of South Carolina, Universidade de Coimbra/GEMF and IZA)
Pedro Portugal () (Banco de Portugal, Universidade Nova de Lisboa and IZA)

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Abstract

In Portugal duration of benefits is exclusively age determined while replacement rates are to all intents and purposes uniform. We exploit differences in potential maximum duration of benefits for nearly matched pairs of individuals who differ in age by one year and in potential maximum duration of benefits by three months. In specifications that take account of unobserved individual heterogeneity, while controlling for pure age effects on escape rates, we find that lower maximum benefit duration is associated with substantially higher quarterly rates of job finding in the range 53 to 106 percent.

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File URL: ftp://repec.iza.org/RePEc/Discussionpaper/dp3016.pdf
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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3016.

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Length: 18 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:iza:izadps:dp3016

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Related research
Keywords: unemployment benefits unemployment duration job search

Other versions of this item:

Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings

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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.:
  1. Dale T. Mortensen, 1977. "Unemployment insurance and job search decisions," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 30(4), pages 505-517, July.
  2. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July. [Downloadable!] (restricted)
    Other versions:
  3. Addison, John T. & Portugal, Pedro, 2001. "Unemployment Duration: Competing and Defective Risks," IZA Discussion Papers 350, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Rafael Lalive & Jan Van Ours & Josef Zweimüller, 2006. "How Changes in Financial Incentives Affect the Duration of Unemployment," Review of Economic Studies, Blackwell Publishing, vol. 73(4), pages 1009-1038, October. [Downloadable!] (restricted)
    Other versions:
  5. Portugal, Pedro & Addison, John T., 2003. "Six Ways to Leave Unemployment," IZA Discussion Papers 954, Institute for the Study of Labor (IZA). [Downloadable!]
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