Discussion Paper Details

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Title: How Changes in Benefits Entitlement Affect the Duration of Unemployment

Author(s): Jan C. van Ours and Milan Vodopivec

Publication Date: March 2005

Keyword(s): job finding rates, potential benefit duration and unemployment insurance

Programme Area(s): Labour Economics

Abstract: This paper investigates the disincentive effects of the potential duration of unemployment insurance (UI) benefits. The disincentive effects are identified by exploiting changes in the UI system in Slovenia, which involved substantial reductions in the potential benefit duration and had characteristics of a ?natural experiment?. We find that the change had a positive effect on the exit rate out of unemployment ? both to employment and to other destinations ? at various durations of unemployment spells and for many categories of unemployed workers.

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Bibliographic Reference

van Ours, J and Vodopivec, M. 2005. 'How Changes in Benefits Entitlement Affect the Duration of Unemployment'. London, Centre for Economic Policy Research.