2010
DOI: 10.1007/s00148-010-0318-8
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Equilibrium unemployment and the duration of unemployment benefits

Abstract: This paper uses microdata to evaluate the impact on the steady-state unemployment rate of an increase in maximum benefit duration. We evaluate a policy change in Austria that extended maximum benefit duration and use this policy change to estimate the causal impact of benefit duration on labor market flows. We find that the policy change leads to a significant increase in the steady-state unemployment rate and, surprisingly, most of this increase is due to an increase in the inflow into rather than the outflow… Show more

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Cited by 25 publications
(14 citation statements)
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“…Because the pre-REBP period covers only one year, it more di cult to disentangle the change in inflow due to UI generosity from the e↵ect of adverse labor market conditions. See also Lalive and Zweimüller (2004b) providing a descriptive analysis of inflow and outflow e↵ects of the REBP and Lalive, van Ours and Zweimüller (2011) examining the e↵ect Wunsch (2012) study a German UI policy reform that strongly reduced UI benefit duration for older workers. They find a positive "last-minute" increase in the unemployment inflow, suggesting for workers taking advantage of the generous UI rules before they were terminated.…”
Section: Ui Generosity and Job Separationsmentioning
confidence: 99%
“…Because the pre-REBP period covers only one year, it more di cult to disentangle the change in inflow due to UI generosity from the e↵ect of adverse labor market conditions. See also Lalive and Zweimüller (2004b) providing a descriptive analysis of inflow and outflow e↵ects of the REBP and Lalive, van Ours and Zweimüller (2011) examining the e↵ect Wunsch (2012) study a German UI policy reform that strongly reduced UI benefit duration for older workers. They find a positive "last-minute" increase in the unemployment inflow, suggesting for workers taking advantage of the generous UI rules before they were terminated.…”
Section: Ui Generosity and Job Separationsmentioning
confidence: 99%
“…Earlier studies, reviewed by Krueger and Meyer (2002), put it in the range of 0.1 to 0.5. Estimates from more recent studies include 0.4 (for men) and 0.8 (for women) for Slovenia (van Ours and Vodopivec 2006), 0.12 for Austria (Lalive et al 2006(Lalive et al , 2011, and 0.13 for Germany (Schmieder et al 2012).…”
Section: Efficiency Effectsmentioning
confidence: 99%
“…Las reacciones ante el desempleo pueden ser diversas siguiendo diferencias individuales, el tiempo que se prolongue (Lalive, Van Ours, & Zweimuller, 2011) y dónde las circunstancias individuales, sociales, e institucionales, son elementos importantes en cómo se vive y se siente esta experiencia y sus efectos de insatisfacción e infelicidad (Ahn, García, & Jimeno, 2004;Ochsen, 2011). El aumento del malestar psicológico en función de la duración del desempleo no ocurre de modo lineal, sino que alcanza su máximo entre 7 y 12 meses y disminuye en períodos más largos (Del Pozo, Ruiz, Pardo, & San Martín, 2002).…”
Section: Trabajo Desempleo Y Efectos Psicológicosunclassified