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Time-dependent effects of unemployment benefits

Author

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  • Juha Kettunen

    (The Research Institute of the Finnish Economy)

Abstract

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.

Suggested Citation

  • Juha Kettunen, 1994. "Time-dependent effects of unemployment benefits," Finnish Economic Papers, Finnish Economic Association, vol. 7(2), pages 120-129, Autumn.
  • Handle: RePEc:fep:journl:v:7:y:1994:i:2:p:120-129
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    File URL: http://taloustieteellinenyhdistys.fi/images/stories/fep/f1994_2d.pdf
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    References listed on IDEAS

    as
    1. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
    2. repec:cor:louvrp:-271 is not listed on IDEAS
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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, 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:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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