“…In this setting, it is extremely appealing to use the regression discontinuity design (RDD). Regression discontinuity has been applied recently by Card et al (2007), Lalive (2007Lalive ( , 2008 to study the impact of UI and severance payments on unemployment duration and match quality. …”
Section: Introductionmentioning
confidence: 99%
“…Using survey data from 1992 to 1997,Addison and Portugal (2007) study the impact of the Portuguese UI rules on transitions out of unemployment into employment. They do not study the impact on reemployment wages.…”
“…In this setting, it is extremely appealing to use the regression discontinuity design (RDD). Regression discontinuity has been applied recently by Card et al (2007), Lalive (2007Lalive ( , 2008 to study the impact of UI and severance payments on unemployment duration and match quality. …”
Section: Introductionmentioning
confidence: 99%
“…Using survey data from 1992 to 1997,Addison and Portugal (2007) study the impact of the Portuguese UI rules on transitions out of unemployment into employment. They do not study the impact on reemployment wages.…”
“…For Portugal, Addison and Portugal (2008) find a large elasticity of the unemployed workers to the benefit duration. Using survey data, they obtain that an increase in the benefit duration of 3 months reduces the escape rate by 70%.…”
We test the predictions of an equilibrium search model about the effects of an increase in the maximum duration of unemployment benefits. We use the 1999 unemployment insurance reform of Portugal, a quasi-natural experiment. The reform increased the maximum duration of benefits for three groups of agents and maintained all features of the unemployment insurance for two other groups. We isolate the effects of the increase in the maximum duration of benefits and test the model. The model successfully predicts the effects on the unemployment rate, the labor force participation, and the levels of unemployment and employment. JEL Classification: E24, J23, J64
“…for recent studies Addison and Portugal, 2008;Lalive et al, 2006;Lalive, 2007Lalive, , 2008Lee and Wilke, 2009;Müller et al, 2007). Fewer studies analyse-as we do-the impact of such changes on unemployment incidence.…”
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IAB Discussion Paper 25/2009Stephan Dlugosz Gesine Stephan Ralf A. Wilke
Fixing the leak
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