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Unemployment duration and the duration of entitlement to unemployment benefits: an empirical study for Britain

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  • Elena Stancanelli

Abstract

The aim of this paper is to investigate the impact of the expected duration of unemployment benefits on the individual probability of leaving unemployment. The theory predicts that the probability of leaving unemployment will increase near the time of the expected exhaustion of unemployment insurance. Still a limited number of empirical studies is available for European countries. The data used for the analysis relate to Britain. The probability of leaving unemployment to take up a full-time job is distinguished from the probability of exiting into other states. It is concluded that although there is some evidence of spikes in the hazard rate near the time of expected benefit exhaustion, no statistically significant benefit exhaustion effect is found.

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  • Elena Stancanelli, 1999. "Unemployment duration and the duration of entitlement to unemployment benefits: an empirical study for Britain," Applied Economics, Taylor & Francis Journals, vol. 31(9), pages 1043-1051.
    • Handle: RePEc:taf:applec:v:31:y:1999:i:9:p:1043-1051
    DOI: 10.1080/000368499323526
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    References listed on IDEAS

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    1. Abbring, Jaap H. & Berg, Gerard J. van den & Ours, Jan C. van, 1996. "The effect of unemployment insurance sanctions on the transition rate from unemployment to employment," Serie Research Memoranda 0038, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Lawrence F. Katz & Bruce D. Meyer, 1990. "Unemployment Insurance, Recall Expectations, and Unemployment Outcomes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(4), pages 973-1002.
    3. Wadsworth, Jonathan, 1991. "Unemployment Benefits and Search Effort in the UK Labour Market," Economica, London School of Economics and Political Science, vol. 58(229), pages 17-34, February.
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    1. 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.
    2. Rafael Lalive & Jan Van Ours & Josef Zweimuller, 2006. "How Changes in Financial Incentives Affect the Duration of Unemployment," Review of Economic Studies, Oxford University Press, vol. 73(4), pages 1009-1038.
    3. 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.
    4. 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.
    5. Virve Ollikainen & Tomi Kyyrä, 2006. "To Search or Not to Search? The Effects of UI Benefit Extension for the Elderly Unemployed," Discussion Papers 400, Government Institute for Economic Research Finland (VATT).
    6. 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.

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