How Changes in Unemployment Benefit Duration Affect the Inflow into Unemployment
AbstractWe study how changes in the maximum benefit duration affect the inflow into unemployment in the Netherlands. Until August 2003, workers who became unemployed after age 57.5 were entitled to unemployment benefits until the age of 65, after which they would receive old age pensions. This characteristic made it attractive for workers to enter unemployment shortly after age 57.5 rather than shortly before. Indeed, we find a peak in the inflow into unemployment for workers after age 57.5. From August 2003 onwards the maximum benefit durations were reduced. We find that shortly after 2003 the peak in the inflow disappeared.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4691.
Length: 21 pages
Date of creation: Jan 2010
Date of revision:
Publication status: published in: Economics Letters, 2010, 109 (2), 105-107
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Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-13 (All new papers)
- NEP-IAS-2010-02-13 (Insurance Economics)
- NEP-LAB-2010-02-13 (Labour Economics)
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.:
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- Lalive, R. & Ours, J.C. van & Zweimüller, J., 2006. "How Changes in Potential Benefit Duration Affect Equilibrium Unemployment," Discussion Paper 2006-94, Tilburg University, Center for Economic Research.
- Christofides, Louis N & McKenna, C J, 1996. "Unemployment Insurance and Job Duration in Canada," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 286-312, April.
- Tuit, Sander & van Ours, Jan C., 2010. "How changes in unemployment benefit duration affect the inflow into unemployment," Economics Letters, Elsevier, vol. 109(2), pages 105-107, November.
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