Increasing incentives for reemployment
This paper studies the incentives of unemployed workers for reemployment using search models and semi-parametric econometric methods of reemployment. The incentives for reemployrnent can be increased by suspending the protective rules regarding labour mobility stipulated in the Finnish Unemployment insurance Act and reducing the benefits after a fixed period of unemployment. The econometric results support such an interpretation. The unemployment benefits have first a negative effect on the probability of becoming employed, but after three months this effect vanishes when the rules of the system become stricter.
Volume (Year): 6 (1993)
Issue (Month): 1 (Spring)
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- Calomiris, Charles W & Hubbard, R Glenn, 1990.
"Firm Heterogeneity, Internal Finance, and 'Credit Rationing.',"
Royal Economic Society, vol. 100(399), pages 90-104, March.
- Charles W. Calomiris & R. Glenn Hubbard, 1988. "Firm Heterogeneity, Internal Finance, and `Credit Rationing'," NBER Working Papers 2497, National Bureau of Economic Research, Inc.
- Bean, C R & Layard, P R G & Nickell, S J, 1986. "The Rise in Unemployment: A Multi-country Study," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages S1-22, Supplemen.
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