An Evaluation of Paid Leave: Participation and Labor Market Tightness
AbstractThis paper analyzes a labor market program which enables workers to leave employment temporarily with a compensation financed by the taxpayers. The main aim of the program was to increase the chances of the unemployed finding a job. However, the empirical analysis reveals a clear negative relationship between the unemployment rate and transition rates from employment into the paid leave scheme. Program participation is low, precisely in those labor market states, where the scheme has a potential to perform as a remedy by increasing the transition rate from unemployment to employment. Several possible explanations are discussed.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 99-19.
Length: 37 pages
Date of creation: Aug 1999
Date of revision:
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labor market policy; temporary leave; parental leave; sabbatical; education; unemployment; search;
Find related papers by JEL classification:
- J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-03-04 (All new papers)
- NEP-LAB-2002-03-04 (Labour Economics)
- NEP-MIC-2002-04-08 (Microeconomics)
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