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Potential Unemployment Benefit Duration and Spell Length: Lessons from a Quasi‐Experiment in Austria

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  • Rudolf Winter‐Ebmer

Abstract

The paper studies the effect of potential unemployment benefit duration on the length of unemployment spells in Austria. It takes advantage of a quasi‐experimental situation, where potential benefit duration was extended in 1988 for elderly workers living in specific regions of the country. The empirical analysis shows that men react significantly to benefit duration whereas women generally do not. The quantitative impact is smaller than in comparable studies for the US and Germany. Furthermore, the impact of extended benefit duration is differentiated for short and long spells. Whereas for long spells higher impacts for men as well as for women are found, no unemployment‐prolonging effects for short spells could be detected.

Suggested Citation

  • Rudolf Winter‐Ebmer, 1998. "Potential Unemployment Benefit Duration and Spell Length: Lessons from a Quasi‐Experiment in Austria," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(1), pages 33-45, February.
    • Handle: RePEc:bla:obuest:v:60:y:1998:i:1:p:33-45
    DOI: 10.1111/1468-0084.00085
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    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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