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Unemployment benefit system and unemployment duration in Finland

Author

Listed:
  • Reija Lilja

    (Helsinki School of Economics)

Abstract

In this paper a competing risks model for the probability of exiting from the labourforce or becoming employed under three different benefit schemes are estimated using data from the Finnish Labour Force Surveys. According to our results employment probability is three times higher for a non-claimant and about twice as high for an earnings-related unemployment insurance receiver than for a similar person on means-tested unemployment assistance. These figures suggest that the unemployment benefit system does not improve the benefit claimants' performance compared to that of the non-claimants in Finland.

Suggested Citation

  • Reija Lilja, 1993. "Unemployment benefit system and unemployment duration in Finland," Finnish Economic Papers, Finnish Economic Association, vol. 6(1), pages 25-37, Spring.
  • Handle: RePEc:fep:journl:v:6:y:1993:i:1:p:25-37
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    Citations

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    Cited by:

    1. Busk, Henna, 2016. "Sanctions and the exit from unemployment in two different benefit schemes," Labour Economics, Elsevier, vol. 42(C), pages 159-176.
    2. Erkki Koskela & Roope Uusitalo, 2003. "The Un-Intended Convergence: How the Finnish Unemployment Reached the European Level," CESifo Working Paper Series 878, CESifo Group Munich.
    3. 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).
    4. repec:eee:labchp:v:3:y:1999:i:pc:p:3085-3139 is not listed on IDEAS
    5. Pasi Holm & Tomi Kyyrä & Juha Rantala, 1999. "Household Level Economic Incentives, Unemployment Trap and Job Finding Probability," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 361-378, August.
    6. 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.
    7. Kyyrä, Tomi & Holm, Pasi & Rantala, Juha, 1998. "Business Cycle, unemployment Trap and Effects of Economic Incentives on Job Finding Probability," Discussion Papers 175, VATT Institute for Economic Research.
    8. Koskela, Erkki & Uusitalo, Roope, 2004. "Unintended convergence : how Finnish unemployment reached the European level," Research Discussion Papers 6/2004, Bank of Finland.
    9. 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:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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