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Poland on the dole: The effect of reducing the unemployment benefit entitlement period during transition

Author

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  • Patrick A. Puhani

    (Centre for European Economic Research , L7,1, D-68161 Mannheim, Germany)

Abstract

We analyse the unemployment benefit regime change that occurred in Poland in December 1991 using data from the Polish Labour Force Survey. Before December 1991, the entitlement period to unemployment benefits was unlimited. Thereafter, it was reduced to 12 months (with a few exceptions). Using the difference-in-differences approach within a hazard rate framework, we find that the regime change did not have a significant effect on the duration of unemployment. The results thus give credence to the view that the unlimited entitlement period of the old unemployment benefit regime was not the main culprit for the long durations of unemployment in Poland, although the generous eligibility criteria may have contributed to the increase in the incidence of registered unemployment at the beginning of the transition process.

Suggested Citation

  • Patrick A. Puhani, 2000. "Poland on the dole: The effect of reducing the unemployment benefit entitlement period during transition," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(1), pages 35-44.
    • Handle: RePEc:spr:jopoec:v:13:y:2000:i:1:p:35-44
    Note: Received: 21 May 1997/Accepted: 15 March 1999
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    Citations

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    Cited by:

    1. Rafael Lalive & Jan Van Ours & Josef Zweimuller, 2006. "How Changes in Financial Incentives Affect the Duration of Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(4), pages 1009-1038.
    2. Konle-Seidl, Regina, 2005. "Lessons learned: Internationale Evaluierungsergebnisse zu Wirkungen aktiver und aktivierender Arbeitsmarktpolitik," IAB-Forschungsbericht 200509, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Alfonso Alba & Jose Maria Arranz & Fernando Muñoz-Bullón, 2012. "Re-employment probabilities of unemployment benefit recipients," Applied Economics, Taylor & Francis Journals, vol. 44(28), pages 3645-3664, October.
    4. Ott Toomet, 2005. "Does an increase in unemployment income lead to longer unemployment spells? Evidence using Danish unemployment assistance data," Economics Working Papers 2005-07, Department of Economics and Business Economics, Aarhus University.
    5. Huber, Peter, 2004. "Intra-national labor market adjustment in the candidate countries," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 248-264, June.
    6. Marta C. Lopes, 2022. "A review on the elasticity of unemployment duration to the potential duration of unemployment benefits," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1212-1224, September.
    7. Simoes, Nadia, 2013. "Subsídio de desemprego: uma revisão da literatura teórica e empírica [Unemployment insurance: a survey]," MPRA Paper 52332, University Library of Munich, Germany.
    8. Rafael Lalive & Jan Ours & Josef Zweimüller, 2011. "Equilibrium unemployment and the duration of unemployment benefits," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1385-1409, October.
    9. Le Barbanchon, Thomas, 2016. "The effect of the potential duration of unemployment benefits on unemployment exits to work and match quality in France," Labour Economics, Elsevier, vol. 42(C), pages 16-29.
    10. World Bank, 2004. "Growth, Employment and Living Standards in Pre-Accession Poland, Volume 1," World Bank Publications - Books, The World Bank Group, number 14904, December.
    11. Lalive, R. & van Ours, J.C. & Zweimüller, J., 2006. "How Changes in Potential Benefit Duration Affect Equilibrium Unemployment," Discussion Paper 2006-94, Tilburg University, Center for Economic Research.
    12. World Bank, 2005. "The Quest for Equitable Growth in the Slovak Republic : A World Bank Living Standards Assessment," World Bank Publications - Reports 8312, The World Bank Group.
    13. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 51-76, Winter.
    14. Philippe Rusin, 2007. "Pologne « libérale » versus Pologne « solidaire »," Post-Print halshs-01159197, HAL.
    15. Ott-Siim Toomet, 2005. "Does an Increase in Unemployment Income Lead to Longer Unemployment Spells? Evidence Using Danish Unemployment Assistance Data," Bank of Estonia Working Papers 2005-09, Bank of Estonia, revised 10 Oct 2005.
    16. Lionel Cottier & Kathrin Degen & Rafael Lalive, 2020. "Can unemployment benefit cuts improve employment and earnings?," Empirical Economics, Springer, vol. 59(2), pages 659-699, August.
    17. Giles, John & Park, Albert & Cai, Fang, 2006. "Reemployment of dislocated workers in urban China: The roles of information and incentives," Journal of Comparative Economics, Elsevier, vol. 34(3), pages 582-607, September.

    More about this item

    Keywords

    Unemployment benefits; unemployment durations; Poland;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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