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A search theoretical analysis of the Finnish unemployment insurance system

Author

Listed:
  • Juha Kettunen

    (The Research Institute of the Finnish Economy)

Abstract

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.

Suggested Citation

  • Juha Kettunen, 1992. "A search theoretical analysis of the Finnish unemployment insurance system," Finnish Economic Papers, Finnish Economic Association, vol. 5(2), pages 129-138, Autumn.
    • Handle: RePEc:fep:journl:v:5:y:1992:i:2:p:129-138
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    Citations

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    Cited by:

    1. Kettunen, Juha, . "Essays on Wages, Job Tenure and Unemployment Duration in the Finnish Labour Market," ETLA A, The Research Institute of the Finnish Economy, number 25.
    2. Kettunen, Juha, 1996. "Duration-dependent features of unemployment insurance," Economics Letters, Elsevier, vol. 51(1), pages 115-121, April.
    3. Kettunen, Juha, 2002. "Labour mobility of unemployed workers," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 359-380, May.
    4. Kettunen, Juha, 1997. "Education and unemployment duration," Economics of Education Review, Elsevier, vol. 16(2), pages 163-170, April.

    More about this item

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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