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Unemployment duration and unemployment insurance: a comparative analysis based on Scandinavian micro data

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  • Knut Røed
  • Peter Jensen
  • Anna Thoursie

Abstract

Based on pooled register data from Norway and Sweden, we find that differences in unemployment duration patterns reflect dissimilarities in unemployment insurance (UI) systems in a way that convincingly establishes the link between economic incentives and job search behaviour. Specifically, UI benefits are relatively more generous for low-income workers in Sweden than in Norway, leading to relatively longer unemployment spells for low-income workers in Sweden. Based on the between-countries variation in replacement ratios, we find that the elasticity of the outflow rate from insured unemployment with respect to the replacement ratio is approximately one in Norway and 0.5 in Sweden. Copyright 2008 , Oxford University Press.

Suggested Citation

  • Knut Røed & Peter Jensen & Anna Thoursie, 2008. "Unemployment duration and unemployment insurance: a comparative analysis based on Scandinavian micro data," Oxford Economic Papers, Oxford University Press, vol. 60(2), pages 254-274, April.
  • Handle: RePEc:oup:oxecpp:v:60:y:2008:i:2:p:254-274
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    File URL: http://hdl.handle.net/10.1093/oep/gpm021
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    Citations

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    Cited by:

    1. Annette Alstadsæter & Marie Bjørneby & Wojciech Kopczuk & Simen Markussen & Knut Røed, 2022. "Saving Effects of a Real-Life Imperfectly Implemented Net Wealth Tax: Evidence from Norwegian Micro Data," NBER Working Papers 30031, National Bureau of Economic Research, Inc.
    2. Fevang, Elisabeth & Hardoy, Inés & Røed, Knut, 2013. "Getting Disabled Workers Back to Work: How Important Are Economic Incentives?," IZA Discussion Papers 7137, Institute of Labor Economics (IZA).
    3. Røed, Knut, 2012. "Active Unemployment Insurance," IZA Policy Papers 41, Institute of Labor Economics (IZA).
    4. Adam Čabla & Ivana Malá, 2017. "Využití metod analýzy přežití pro modelování doby nezaměstnanosti v České republice [The Use of Survival Analysis Methods for the Modelling of Unemployment in the Czech Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2017(4), pages 501-519.
    5. Røed, Knut & Westlie, Lars, 2007. "Unemployment Insurance in Welfare States: Soft Constraints and Mild Sanctions," IZA Discussion Papers 2877, Institute of Labor Economics (IZA).
    6. Holmlund, Bertil, 2014. "What do labor market institutions do?," Labour Economics, Elsevier, vol. 30(C), pages 62-69.
    7. Sadat Reza & Paul Rilstone, 2016. "Semiparametric Efficiency Bounds and Efficient Estimation of Discrete Duration Models with Unspecified Hazard Rate," Econometric Reviews, Taylor & Francis Journals, vol. 35(5), pages 693-726, May.
    8. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2020. "Immigrant Responses to Social Insurance Generosity," Labour Economics, Elsevier, vol. 65(C).
    9. Bjørneby, Marie & Markussen, Simen & Røed, Knut, 2020. "Does the Wealth Tax Kill Jobs?," IZA Discussion Papers 13766, Institute of Labor Economics (IZA).
    10. Marie Bjørneby & Simen Markussen & Knut Røed, 2023. "An imperfect wealth tax and employment in closely held firms," Economica, London School of Economics and Political Science, vol. 90(358), pages 557-583, April.
    11. Annette Alstadsæter & Marie Bjørneby & Wojciech Kopczuk & Simen Markussen & Knut Røed, 2022. "Saving Effects of a Real-Life Imperfectly Implemented Wealth Tax: Evidence from Norwegian Micro Data," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 63-67, May.

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