Time-dependent effects of unemployment benefits
This paper presents methods to estimate the effects of time-dependent covariates in parametric duration models using microeconomic data. In the Finnish system persons who are eligible for the benefits have a risk to lose them after the first three months. In addition the earnings-related unemployment allowances decrease 20 per cent after the first 100 days unemployment. Using Finnish data it is shown that unemployment benefits have a negative effect on the probability of becoming employed during the first months, but after that period the effect vanishes.
Volume (Year): 7 (1994)
Issue (Month): 2 (Autumn)
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- Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
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