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Unemployment Insurance in Finland: A Review of Recent Changes and Empirical Evidence on Behavioral Responses

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  • Kyyrä, Tomi
  • Pesola, Hanna
  • Rissanen, Aarne

Abstract

The goal of this report is twofold. The first is to provide an overview of the Finnish unemployment insurance (UI) system. We describe all major changes in eligibility criteria, benefit levels and benefit durations since 2000. We also assess how these have changed the overall generosity of the benefit scheme over time. The second is to summarize what we know about the effects of UI benefits in the context of the Finnish labor market. For background we provide a brief look at the economic theory of UI, but our main focus is on empirical evidence on behavioral responses. We survey the existing evidence and present some new results for the effects of eligibility criteria, benefit levels and benefit durations on labor market outcomes in Finland.

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  • Kyyrä, Tomi & Pesola, Hanna & Rissanen, Aarne, 2017. "Unemployment Insurance in Finland: A Review of Recent Changes and Empirical Evidence on Behavioral Responses," Research Reports 184, VATT Institute for Economic Research.
    • Handle: RePEc:fer:resrep:184
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    3. Steffen Juranek & Jörg Paetzold & Hannes Winner & Floris Zoutman, 2020. "Labor Market Effects of Covid-19 in Sweden and Its Neighbors: Evidence from Novel Administrative Data," CESifo Working Paper Series 8473, CESifo.
    4. Yakut, Aykut Mert & de Bruin, Kelly, 2023. "The importance of having a more realistic welfare transfer determination rule: A CGE analysis for Ireland," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1310-1325.
    5. Nathalie Havet & Xavier Joutard & Alexis Penot, 2019. "Les pratiques d’activité réduite et leurs impacts sur les trajectoires professionnelles : une revue de la littérature," Revue d'économie politique, Dalloz, vol. 129(1), pages 11-47.
    6. Kalin, Salla & Kyyrä, Tomi & Matikka, Tuomas, 2023. "Combining Part-time Work and Social Benefits: Empirical Evidence from Finland," Working Papers 159, VATT Institute for Economic Research.
    7. Rubén Castro & Michael Weber & Gonzalo Reyes, 2018. "A policy for the size of individual unemployment accounts," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-11, December.
    8. Tomi Kyyrä & Hanna Pesola, 2018. "The labor market in Finland, 2000–2016," IZA World of Labor, Institute of Labor Economics (IZA), pages 421-421, January.
    9. Tomi Kyyrä & Hanna Pesola, 2020. "The labor market in Finland, 2000–2018," IZA World of Labor, Institute of Labor Economics (IZA), pages 421-421, March.
    10. Steffen Juranek & Jörg Paetzold & Hannes Winner & Floris Zoutman, 2021. "Labor market effects of COVID‐19 in Sweden and its neighbors: Evidence from administrative data," Kyklos, Wiley Blackwell, vol. 74(4), pages 512-526, November.
    11. repec:hal:spmain:info:hdl:2441/1v5orglviq8epaecq1buersvk5 is not listed on IDEAS
    12. Kyyrä, Tomi & Pesola, Hanna & Verho, Jouko, 2019. "The spike at benefit exhaustion: The role of measurement error in benefit eligibility," Labour Economics, Elsevier, vol. 60(C), pages 75-83.

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    Keywords

    Unemployment insurance; layoffs; unemployment; työttömyysvakuutus; irtisanomiset; työttömyys;
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