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Job-Search Requirements for Unemployed at the End of Working Life: Effects on Unemployment Dynamics and Self-Employment Probabilities

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  • Jim Been
  • Marike Knoef

Abstract

This paper investigates the extent to which job search requirements in unemployment insurance (U.I.) increase the probability of self-employment as a retirement route. For causal identification, we apply a difference-in-differences approach, using a Dutch 2004 policy reform that introduced job-search requirements in U.I. for persons aged 57.5 and older. Unemployment dynamics and self-employment probabilities are studied using a dynamic multinomial logit model with unobserved heterogeneity. The results suggest that job-search requirements stimulated people to exit unemployment and discouraged older workers to enter unemployment. The probability of self-employment as an exit route to retirement increased relative to U.I., but not relative to paid employment.

Suggested Citation

  • Jim Been & Marike Knoef, 2017. "Job-Search Requirements for Unemployed at the End of Working Life: Effects on Unemployment Dynamics and Self-Employment Probabilities," Journal of Human Resources, University of Wisconsin Press, vol. 52(2), pages 491-530.
    • Handle: RePEc:uwp:jhriss:v:52:y:2017:i:2:p:491-530
    Note: DOI: 10.3368/jhr.52.2.0415-7063R1
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    Cited by:

    1. Beusch, Elisabeth & Van Soest, Arthur, 2020. "A dynamic multinomial model of self-employment in the Netherlands," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 59, pages 5-32.
    2. Marco T. C. Stam & Marike G. Knoef & Anke A. T. Ramakers, 2024. "Crime over the welfare payment cycle," Economic Inquiry, Western Economic Association International, vol. 62(3), pages 1309-1334, July.
    3. repec:hal:journl:hal-04814517 is not listed on IDEAS
    4. Jim Been & Anne C. Gielen & Marike Knoef & Gloria Moroni, 2022. "Prolonged worklife among grandfathers: Spillover effects on grandchildren's educational outcomes," Tinbergen Institute Discussion Papers 22-033/V, Tinbergen Institute.
    5. Jim Been & Susann Rohwedder & Michael Hurd, 2021. "Households’ joint consumption spending and home production responses to retirement in the US," Review of Economics of the Household, Springer, vol. 19(4), pages 959-985, December.

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