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Unemployment Duration, Unemployment Benefits, and Labour Market Programmes in Sweden

Author

Listed:
  • Carling, Kenneth
  • Edin, Per-Anders
  • Holmlund, Bertil
  • Jansson, Fredrik

Abstract

Standard search theory and some empirical evidence suggest that an unemployed individual's probability of entering employment increases as they approach the time when unemployment benefits are due to expire. This pattern may not carry over to countries such as Sweden, where labour market programmes are targeted at the long-term unemployed at risk of benefit exhaustion. This paper examines movements out of unemployment using data on unemployed individuals in Sweden. A semi-parametric competing risks model for transitions to employment, labour market programmes and non-participation is estimated. There is some evidence that the exit rate from unemployment to employment increases as benefit exhaustion is approached.

Suggested Citation

  • Carling, Kenneth & Edin, Per-Anders & Holmlund, Bertil & Jansson, Fredrik, 1995. "Unemployment Duration, Unemployment Benefits, and Labour Market Programmes in Sweden," CEPR Discussion Papers 1200, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1200
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    Citations

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    Cited by:

    1. David Card & Raj Chetty & Andrea Weber, 2007. "The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?," American Economic Review, American Economic Association, vol. 97(2), pages 113-118, May.
    2. Barbara Sianesi, 2002. "Swedish active labour market programmes in the 1990s: overall effectiveness and differential performance," IFS Working Papers W02/03, Institute for Fiscal Studies.
    3. Barbara Sianesi, 2002. "An evaluation of the Swedish system of active labour market programmes in the 1990s," IFS Working Papers W02/01, Institute for Fiscal Studies.
    4. Kyyrä, Tomi & Holm, Pasi & Rantala, Juha, 1998. "Business Cycle, unemployment Trap and Effects of Economic Incentives on Job Finding Probability," Discussion Papers 175, VATT Institute for Economic Research.

    More about this item

    Keywords

    Unemployment Benefits; Unemployment Duration;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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