Unemployment and subsequent employment stability: does labour market policy matter?

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This paper analyses the effect of unemployment insurance generosity and active labour market policy on reemployment stability in Europe. Using EU-SILC and OECD data, we conduct discrete time survival analyses with shared frailty specification to identify policy effects at the micro and macro level. Empirical evidence suggests that unemployment benefit receipt is associated with longer reemployment duration at the individual level. Furthermore, countries with more generous unemployment insurance and higher ALMP spending show a more sustainable reintegration record of previously unemployed workers. These results point to a policy trade-off between the well-confirmed disincentive and locking-in effect of unemployment benefits and ALMP programmes on the one hand, and their positive effect on reemployment stability on the other hand.JEL Classification: J64, J65, J68

Cumulative disadvantages of non-employment and non-standard work for career patterns and subjective well-being in retirement

“…However, deviations are anticipated rather in times of recessions or like in the Southern welfare regimes through a strong insider/outsider barrier. It is also known that certain policy instruments and organisational structures impact careers (Biegert, 2011;Layte, et al, 2000;Wulfgramm & Fervers, 2015). However, this goes beyond the scope of this paper.…”

Répondre aux défis du marché du travail en Belgique

“…Au surplus, ces dépenses sont relativement faibles, en Belgique, par rapport à l'ensemble des dépenses allouées aux PAMT, puisqu'elles n'en représentent que 15 % environ quand la moyenne OCDE s'établit à 23 % (Graphique 19, Partie B). De nombreuses données internationales démontrent que les moyens consacrés à la formation permettent d'améliorer tant l'employabilité des individus que la qualité des emplois occupés à moyen et long termes (Card et al, 2018 ;Wulfgramm et Fervers, 2013). Le bénéfice d'un tel investissement serait sans doute considérable en Belgique, où le manque de compétences constitue un obstacle majeur à l'emploi (Hijzen et al, 2020…”

Effects of tax-benefit policies on the income distribution and work incentives in Estonia

“…The absence of adequate insurance mechanisms and social safety net is thus likely to magnify the macroeconomic impact of negative external shocks. Economic literature also shows it might reduce incentives to take up formal jobs (OECD, 2008) and the quality of matching on the labour market, as job seekers can devote less time to find a job that match their competences (Wulfgram and Fervers, 2013;Tatsiramos, 2009).…”