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Search, Benefits and Entitlement

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  • Lindeboom, Maarten
  • Theeuwes, Jules

Abstract

In a simultaneous analysis of unemployment duration and search intensity, the authors estimate a nonstructural search model accounting explicitly for two features of the benefit system: benefit level and time remaining until exhaustion of the entitlement period (residual entitlement). Special attention is paid to the number of search contacts as an indicator for search intensity. To assess the effect of the benefit level and residual entitlement on the number of search contacts, the authors estimate a Poisson model. Their results suggest that benefits work through a reduction of search efforts, whereas residual entitlement is effective mainly through the reservation wage. Copyright 1993 by The London School of Economics and Political Science.

Suggested Citation

  • Lindeboom, Maarten & Theeuwes, Jules, 1993. "Search, Benefits and Entitlement," Economica, London School of Economics and Political Science, vol. 60(239), pages 327-346, August.
  • Handle: RePEc:bla:econom:v:60:y:1993:i:239:p:327-46
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    Cited by:

    1. T. Everhardt & Ph. Jong, 2011. "Return to Work After Long Term Sickness," De Economist, Springer, vol. 159(3), pages 361-380, September.
    2. Roed, Knut & Nordberg, Morten, 2003. "Temporary layoffs and the duration of unemployment," Labour Economics, Elsevier, vol. 10(3), pages 381-398, June.
    3. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January.
    4. Bart Cockx & Jean Ries, 2004. "The Exhaustion of Unemployment Benefits in Belgium. Does it Enhance the Probability of Employment?," CESifo Working Paper Series 1226, CESifo Group Munich.
    5. Egbert Jongen, 2009. "An analysis of individual accounts for the unemployment risk in the Netherlands," CPB Document 186, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Jenkins, Stephen P. & Garcia-Serrano, Carlos, 2000. "Re-employment probabilities for Spanish men: what role does the unemployment benefit system play?," ISER Working Paper Series 2000-17, Institute for Social and Economic Research.
    7. Boman, Anders, 2012. "Employment effects of extended geographic scope in job search," Labour Economics, Elsevier, vol. 19(5), pages 643-652.
    8. Virve Ollikainen & Tomi Kyyrä, 2006. "To Search or Not to Search? The Effects of UI Benefit Extension for the Elderly Unemployed," Discussion Papers 400, Government Institute for Economic Research Finland (VATT).
    9. Élena Stancanelli, 1996. "L'impact de l'allocation chômage sur la probabilité de réemploi : de nouveaux résultats pour le Royaume Uni," Économie et Prévision, Programme National Persée, vol. 126(5), pages 31-44.

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