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Accelerating the transition to employment at benefit exhaustion:
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Accelerating the transition to employment at benefit exhaustion:

Still possible after four years of unemployment?

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This paper provides evidence of how the long-term unemployed react to the threat of running out of unemployment insurance (UI) after receiving it for nearly 4 years. To identify the effect of UI exhaustion, we make use of a 1999 Danish legislative change that progressively reduced potential benefit duration from 5 to 4 years. We find that shortening UI duration hastens the transition to employment throughout the unemployment spell up to benefit exhaustion even if it occurs as long as four years later. However, although the proportional effect is large, it is small in absolute value.
Forfattere Stéphanie Vincent, SFI
Cecilie Dohlmann Weatherall
Lars Pico Geerdsen
Udgivelsesdato 31.03.2017
Publiceret i Empirical Economics
Sprog Engelsk
Sidetal 29

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