A search theoretical analysis of the Finnish unemployment insurance system
This paper studies the effects of the Finnish unemployment insurance on the re-employment of unemployed workers using a search theoretical framework. It is well known that the unemployment benefits have a negative effect on the re-employment. In this paper it is shown that the re-employment probability can be increased by lowering the costs of re-employment. Furthermore, it is shown that the qualifying waiting period has only a slight positive effect on the hazard function, but removing of the mobility rules and reduction of benefits after a fixed period of unemployment substantially increase the re-employment probability.
Volume (Year): 5 (1992)
Issue (Month): 2 (Autumn)
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- Dale T. Mortensen, 1977. "Unemployment insurance and job search decisions," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(4), pages 505-517, July.
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