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Why do Some Studies Show that Generous Unemployment Benefits Increase Unemployment Rates? A Meta-Analysis of Cross-Country Studies

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  • Kim, Jaewon

    (Dept. of Economics, Stockholm University)

Abstract

This paper investigates the hypothesis that generous unemployment benefits give rise to high levels of unemployment by systematically reviewing 34 cross- country studies. In contrast to conventional literature surveys, I perform a meta-analysis which applies regression techniques to a set of results taken from the existing literature. The main finding is that the choice of the primary data and estimation method matter for the final outcome. The control variables in the primary studies also affect the results.

Suggested Citation

  • Kim, Jaewon, 2011. "Why do Some Studies Show that Generous Unemployment Benefits Increase Unemployment Rates? A Meta-Analysis of Cross-Country Studies," Research Papers in Economics 2011:18, Stockholm University, Department of Economics.
    • Handle: RePEc:hhs:sunrpe:2011_0018
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    File URL: http://www2.ne.su.se/paper/wp11_18.pdf
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    References listed on IDEAS

    as
    1. Yu‐Fu Chen & Dennis Snower & Gylfi Zoega, 2003. "Labour‐market Institutions and Macroeconomic Shocks," LABOUR, CEIS, vol. 17(2), pages 247-270, June.
    2. Rachel Griffith & Rupert Harrison & Gareth Macartney, 2007. "Product Market Reforms, Labour Market Institutions and Unemployment," Economic Journal, Royal Economic Society, vol. 117(519), pages 142-166, March.
    3. Jean-Paul Fitoussi & David Jestaz & Edmund S. Phelps & Gylfi Zoega, 2000. "Roots of the Recent Recoveries: Labor Reforms or Private Sector Forces?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 237-311.
    4. repec:hal:spmain:info:hdl:2441/5571 is not listed on IDEAS
    5. Di Tella, Rafael & MacCulloch, Robert, 2005. "The consequences of labor market flexibility: Panel evidence based on survey data," European Economic Review, Elsevier, vol. 49(5), pages 1225-1259, July.
    6. repec:hal:wpspec:info:hdl:2441/5571 is not listed on IDEAS
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    More about this item

    Keywords

    meta-analysis; cross-country study; unemployment; benefits replacement rate; benefit duration;
    All these keywords.

    JEL classification:

    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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