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Poland on the dole: unemployment benefits, training, and long-term unemployment during transition

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  • Puhani, Patrick A.

Abstract

We analyse the duration of unemployment spells in Poland using data from the Polish Labour Force Survey of August 1994. The effects on the duration of unemployment of important socio-economic and demographic characteristics are explored besides the impacts of the unemployment benefit system and training schemes. Finally, we investigate whether prior unemployment influences one's chances to find a job. Entitlements to unemployment benefits prolong unemployment spell durations significantly. This effect is roughly of the same magnitude under the two benefit regimes that existed between 1990 and 1994, although the generosity of the unemployment benefit system has been reduced drastically in 1992. The results give credence to the view that the unlimited entitlement period of the old regime was not the main culprit for the widespread incidence of long-term unemployment. Training programmes organised by labour offices should not be regarded as a panacea for the problems of the long-term unemployed. The results suggest that active labour market policies should perhaps be seen more as a tool for social rather than economic policy. People with previous unemployment spells must expect to stay unemployed far longer than people who become unemployed for the first time. On the other hand, controlling for unobserved individual heterogeneity, we find that the probability of finding a job increases, especially for men, with the duration of unemployment.

Suggested Citation

  • Puhani, Patrick A., 1996. "Poland on the dole: unemployment benefits, training, and long-term unemployment during transition," ZEW Discussion Papers 96-30, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:9630
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    References listed on IDEAS

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    1. Steiner, Viktor & Kwiatkowski, Eugeniusz, 1995. "The Polish labour market in transition," ZEW Discussion Papers 95-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
    3. Hunt, Jennifer, 1995. "The Effect of Unemployment Compensation on Unemployment Duration in Germany," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 88-120, January.
    4. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
    5. Heckman, James J & Borjas, George J, 1980. "Does Unemployment Cause Future Unemployment? Definitions, Questions and Answers from a Continuous Time Model of Heterogeneity and State Dependence," Economica, London School of Economics and Political Science, vol. 47(187), pages 247-283, August.
    6. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
    7. Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey," Economic Inquiry, Western Economic Association International, vol. 14(3), pages 347-368, September.
    8. Puhani, Patrick A., 1995. "Labour supply of married women in Poland: a microeconometric study based on the Polish labour force survey," ZEW Discussion Papers 95-12, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. Puhani, Patrick A. & Steiner, Viktor, 1996. "Public works for Poland? Active labour market policies during transition," ZEW Discussion Papers 96-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    10. Micklewright, John & Nagy, Gyula, 1995. "Unemployment Insurance and Incentives in Hungary," CEPR Discussion Papers 1118, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Michael Lechner & Ruth Miquel & Conny Wunsch, 2007. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification," German Economic Review, Verein für Socialpolitik, vol. 8, pages 468-509, November.
    2. Ansgar Belke & Martin Hebler, 2000. "EU enlargement and labour markets in the CEECs," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 35(5), pages 219-230, September.
    3. Maciej Bukowski & Piotr Lewandowski, 2005. "Transitions from unemployment in Poland: a multinomial logit analysis," Labor and Demography 0511008, EconWPA, revised 19 Dec 2005.

    More about this item

    Keywords

    unemployment duration; incentives; training; Poland; transition;

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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