Duration of unemployment benefits and quality of post-unemployment jobs : evidence from a natural experiment
This paper investigates how the potential duration of unemployment benefits affects the quality of post-unemployment jobs. It takes advantage of a natural experiment introduced by a change in Slovenia's unemployment insurance law that substantially reduced the potential benefit duration. Although this reduction strongly increased job finding rates, the quality of the post-unemployment jobs remained unaffected. The paper finds that the law change had no effect on the type of contract (temporary versus permanent), the duration of the post-unemployment job, or the wage earned in the job.
|Date of creation:||01 Oct 2006|
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