Unemployment Benefits and Labour Market Transitions in Britain
Recent evidence suggests that unemployment benefit recipients search more extensively than non-recipients. It is conceivable that benefit claimants, looking for work in a more formal search environment, enjoy an informational advantage relative to non-claimants. This paper examines how such an effect could influence the probability of leaving unemployment, utilising data drawn from a matched sub-sample of the 1983 and 1984 Labour Force Surveys. Studies which neglect the claimant/non-claimant dichotomy may bias the true impact of the benefit system on transitions, since they also neglect this informational asymmetry. Utilising a general Markovian framework, multinomial logistic regressions of individual annual transition probabilities from unemployment into employment and inactivity are estimated. Benefit receipt has a small positive influence on the likelihood of employment entry amongst those most at risk from labour force exit- women and the long-term unemployed. The main benefit impact however, is to maintain a higher effective labour supply.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Apr 1992|
|Contact details of provider:|| Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP|