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Analysing the relationship between unemployment benefits and unemployment duration

Author

Listed:
  • Laura Južnik Rotar

    (Faculty of Economics and Informatics, University of Novo Mesto, Slovenia)

  • Sabina Krsnik

    (Faculty of Health Sciences, University of Novo Mesto, Slovenia)

Abstract

The aim of this paper is to analyse the relationship between unemployment benefits and durations of unemployment with respect to different approaches in social policy. The hypothesis of the research is that unemployment benefits negatively affect the duration of unemployment. An analysis of the relationship concerning unemployment benefits and duration of unemployment within the European Union Member States (EU-28) between 2006–2018 using panel data regression approach was conducted. The sample was split into sub-samples in order to get more homogeneous groups of EU-28 countries. Estimation results suggest that the more generous a social policy, the more prevalent the negative relationship between unemployment duration and unemployment benefits. Our results also revealed that the better the economic situation, the less pressure is put on unemployment benefits and on the duration of unemployment.

Suggested Citation

  • Laura Južnik Rotar & Sabina Krsnik, 2020. "Analysing the relationship between unemployment benefits and unemployment duration," Society and Economy, Akadémiai Kiadó, Hungary, vol. 42(3), pages 280-297, September.
    • Handle: RePEc:aka:soceco:v:42:y:2020:i:3:p:280-297
    DOI: 10.1556/204.2020.00009
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    Cited by:

    1. Valeria Pulignano & Deborah Dean & Markieta Domecka & Lander Vermeerbergen, 2023. "How state influence on project work organization both drives and mitigates gendered precarity in cultural and creative industries," British Journal of Industrial Relations, London School of Economics, vol. 61(2), pages 313-335, June.

    More about this item

    Keywords

    labour market; unemployment duration; unemployment benefits; social policy; EU;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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