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A search theoretical analysis of the Finnish unemployment insurance system

  • Juha Kettunen

    (The Research Institute of the Finnish Economy)

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    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.

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    File URL: http://taloustieteellinenyhdistys.fi/images/stories/fep/f1992_2f.pdf
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    Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

    Volume (Year): 5 (1992)
    Issue (Month): 2 (Autumn)
    Pages: 129-138

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    Handle: RePEc:fep:journl:v:5:y:1992:i:2:p:129-138
    Contact details of provider: Web page: http://www.taloustieteellinenyhdistys.fi
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    1. 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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