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How Does the Unemployment Insurance System Shape the Time Profile of Jobless Duration? Author info | Abstract | Publisher info | Download info | Related research | Statistics Addison, John T. () (University of South Carolina and IZA Bonn)
Portugal, Pedro (Banco de Portugal and Universidade Nova de Lisboa)
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This paper examines the effects of unemployment insurance on escape rates from unemployment using data from the 1998 Displaced Worker Survey. Transitions from unemployment to employment are modeled using a flexible representation of the baseline hazard function and allowing for discrete changes through time in the effects of unemployment insurance benefits, as well as those of the other covariates. The impact of unemployment insurance is also modeled using a time-varying benefits measure, namely, time to exhaustion of benefits. Potential biases stemming from reverse causation and unobserved individual heterogeneity are accommodated. Both approaches render transparent the major disincentive effects of access to benefits on re-employment rates while also providing evidence of time-varying effects of other regressors.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
978.
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Length: 27 pages
Date of creation: Jan 2004Date of revision:
Handle: RePEc:iza:izadps:dp978Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany Phone: +49 228 3894 223 Fax: +49 228 3894 180 Web page: http://www.iza.org
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For technical questions regarding this item, or to correct its listing, contact: (Mark Fallak).
Keywords: unemployment benefits ; unemployment duration ; time-varying coefficients/regressors ; 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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Full
references Cited by : (explanations , 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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