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The Effect of the Potential Duration of Unemployment Benefits on Unemployment Exits to Work and Match Quality in France

Listed author(s):
  • Thomas Le Barbanchon

    ()

    (CREST)

Recent empirical literature finds very limited average effects of generous unemployment benefits on match quality. This study examines those effects in a setting where they could be large. We focus on workers with low employability and evaluate the impact of a large increase in potential benefit duration from 7 to 15months. Our regression discontinuity design does not elicit significant short-term or medium-term effects on either employment duration or wages, whereas we find large positive effects on unemployment and non-employment duration.

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Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2012-21.

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Length: 43
Date of creation: Sep 2012
Handle: RePEc:crs:wpaper:2012-21
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