کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
971487 | 1479712 | 2013 | 10 صفحه PDF | دانلود رایگان |
• We evaluate a cut in potential UI duration for unemployed aged 55–56.
• Due to institutional setting UI duration can be seen as duration until workfare.
• We find increased job hazards by 10 percent prior to workfare.
• Effect is due to increased search effort, not lower reservation wages.
• Crude cost–benefit analysis turns out positive.
We estimate the effects of conditioning benefits on program participation among older long-term unemployed workers. We exploit a Swedish reform which reduced UI duration from 90 to 60 weeks for a group of older unemployed workers in a setting where workers who exhausted their benefits received unchanged transfers if they agreed to participate in a work practice program. Our results show that job finding increased as a result of the shorter duration of passive benefits. The time profile of the job-finding effects suggests that the results are due to deterrence during the program-entry phase. We find no impact on ensuing job durations or wages, suggesting that the increased job-finding rate was driven by increased search intensity rather than lower reservation wages. A crude cost–benefit analysis suggests that the reform reduced the combined cost of programs and transfers.
Journal: Labour Economics - Volume 25, December 2013, Pages 25–34