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Time-dependent effects of unemployment benefits

Author

Listed:
  • Juha Kettunen

    (The Research Institute of the Finnish Economy)

Abstract

This paper presents methods to estimate the effects of time-dependent covariates in parametric duration models using microeconomic data. In the Finnish system persons who are eligible for the benefits have a risk to lose them after the first three months. In addition the earnings-related unemployment allowances decrease 20 per cent after the first 100 days unemployment. Using Finnish data it is shown that unemployment benefits have a negative effect on the probability of becoming employed during the first months, but after that period the effect vanishes.

Suggested Citation

  • Juha Kettunen, 1994. "Time-dependent effects of unemployment benefits," Finnish Economic Papers, Finnish Economic Association, vol. 7(2), pages 120-129, Autumn.
    • Handle: RePEc:fep:journl:v:7:y:1994:i:2:p:120-129
    as

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    References listed on IDEAS

    as
    1. Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 63-132.
    2. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
    3. repec:cor:louvrp:-271 is not listed on IDEAS
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    Cited by:

    1. Kettunen, Juha, 2002. "Labour mobility of unemployed workers," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 359-380, May.
    2. Kettunen, Juha, . "Essays on Wages, Job Tenure and Unemployment Duration in the Finnish Labour Market," ETLA A, The Research Institute of the Finnish Economy, number 25, June.

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    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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