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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, 1996. "Duration-dependent features of unemployment insurance," Economics Letters, Elsevier, vol. 51(1), pages 115-121, April.
    2. Kettunen, Juha, 1997. "Education and unemployment duration," Economics of Education Review, Elsevier, vol. 16(2), pages 163-170, April.
    3. 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.
    4. Kettunen, Juha, 2002. "Labour mobility of unemployed workers," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 359-380, May.

    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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