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The Non Take-up of an Unemployment Insurance Reform in France

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  • Sylvie Blasco

    (Crest)

Abstract

On July 2001 a more generous unemployment insurance system was introduced in France.Those who were registered at the national unemployment agency at the moment of thereform could choose between staying in the former system and switching to the new one.This paper deals with the selection problem. To explain non participation, we propose atheoretical stationary job search model with several search channels, endogenous searche ort and psychological and time costs associated with the use of the public channel.Because of data availability, we estimate the non take-up rate and identify the stayingpopulation using defective duration methods.We nd a signi cant non take-up rate smallerthan 10% and evidence of self-selection. Stigma, informational issues and expectation of ashort unemployment spell are found to explain non participation.

Suggested Citation

  • Sylvie Blasco, 2008. "The Non Take-up of an Unemployment Insurance Reform in France," Working Papers 2008-14, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2008-14
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    1. repec:hal:spmain:info:hdl:2441/5f63rk8j8i8vlpr3b1ernvsg0u is not listed on IDEAS
    2. Baguelin, Olivier & Remillon, Delphine, 2014. "Unemployment insurance and management of the older workforce in a dual labor market: Evidence from France," Labour Economics, Elsevier, vol. 30(C), pages 245-264.
    3. Stéphane Auray & David L. Fuller, 2020. "Eligibility, experience rating, and unemployment insurance take‐up," Quantitative Economics, Econometric Society, vol. 11(3), pages 1059-1107, July.

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