Article ID Journal Published Year Pages File Type
972061 Labour Economics 2016 14 Pages PDF
Abstract

•We evaluate the impact of a large increase in the max duration of unemployment benefits.•We find no significant effects on post-unemployment wages or job stability.•We find significant positive effects on unemployment and non-employment duration.

Recent empirical literature finds very limited average effects of generous unemployment benefits on match quality. This study examines those effects in a setting where they could be large. We focus on workers with low employability and evaluate the impact of a large increase in potential benefit duration from 7 to 15 months. Our regression discontinuity design does not elicit significant short-term or medium-term effects on either employment duration or wages, whereas we find large positive effects on unemployment and non-employment duration.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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