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How demanding are eligibility criteria for unemployment benefits, quantitative indicators for OECD and EU countries

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  • Kristine Langenbucher

    (OECD)

Abstract

Eligibility criteria for unemployment benefits, which require recipients to actively look for work, take up suitable job offers or take part in active labour market programmes (ALMPs), or risk benefit sanctions, can play an important role in offsetting the negative impact of generous unemployment benefits on employment incentives. This paper presents information on the strictness of eligibility criteria for unemployment benefits for 40 OECD and/or EU member countries. It covers availability requirements during ALMPs and suitable work criteria, job search requirements and monitoring of independent job search effort, and sanctions for voluntary unemployment, refusing a job offer or participation in active labour market measures. These qualitative data are then used to compile a composite indicator of the strictness of eligibility criteria and some comparisons are made with the results of a similar exercise by the OECD in 2011. This indicator complements existing cross-country indicators relating to unemployment benefits, such as net replacement rate data from the OECD Taxes and Benefits Database and data on ALMP expenditure compiled annually by Eurostat and the OECD.

Suggested Citation

  • Kristine Langenbucher, 2015. "How demanding are eligibility criteria for unemployment benefits, quantitative indicators for OECD and EU countries," OECD Social, Employment and Migration Working Papers 166, OECD Publishing.
    • Handle: RePEc:oec:elsaab:166-en
    DOI: 10.1787/5jrxtk1zw8f2-en
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    Cited by:

    1. Bart Cockx & Eva Van Belle, 2019. "Waiting longer before claiming, and activating youth: no point?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(4), pages 658-687, January.
    2. Sebastien Menard, 2019. "The impact of benefit sanctions on equilibrium wage dispersion and job vacancies," TEPP Working Paper 2019-08, TEPP.
    3. Cockx, Bart & Lechner, Michael & Bollens, Joost, 2023. "Priority to unemployed immigrants? A causal machine learning evaluation of training in Belgium," Labour Economics, Elsevier, vol. 80(C).
    4. Eichhorst, Werner & Konle-Seidl, Regina, 2016. "Evaluating Labour Market Policy," IZA Discussion Papers 9966, Institute of Labor Economics (IZA).
    5. Maitreesh Ghatak & François Maniquet, 2019. "Universal Basic Income: Some Theoretical Aspects," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 895-928, August.
    6. Cockx, B. & Declercq, Koen & Dejemeppe, Muriel, 2022. "Losing prospective entitlement to unemployment benefits. Impact on educational attainment," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    7. Cockx, Bart & Declercq, Koen & Dejemeppe, Muriel & Inga, Leda & Van der Linden, Bruno, 2020. "Switching from an inclining to a zero-level unemployment benefit profile: Good for work incentives?," Labour Economics, Elsevier, vol. 64(C).
    8. James Browne & Herwig Immervoll & Rodrigo Fernandez & Dirk Neumann & Daniele Pacifico & Céline Thévenot, 2018. "Faces of joblessness in Ireland: A People-centred perspective on employment barriers and policies," OECD Social, Employment and Migration Working Papers 209, OECD Publishing.
    9. Mihai Alexandru Codreanu & Tom Waters, 2023. "Do work search requirements work? Evidence from a UK reform targeting single parents," IFS Working Papers W23/02, Institute for Fiscal Studies.
    10. Yosuke Jin & Aida Caldera Sánchez & Pilar Garcia Perea, 2017. "Reforms for more and better quality jobs in Spain," OECD Economics Department Working Papers 1386, OECD Publishing.
    11. Sebastien Menard & Solenne Tanguy, 2017. "Revisiting Hopenhayn and Nicolini 's optimal unemployment insurance with job search monitoring and sanctions," TEPP Working Paper 2017-08, TEPP.
    12. William Gbohoui, 2019. "Structural Unemployment in Luxembourg: Bad Luck or Rational Choice?," IMF Working Papers 2019/243, International Monetary Fund.
    13. Fischer, Georg, 2017. "The US Unemployment Insurance, a Federal-State Partnership: Relevance for Reflections at the European Level," IZA Policy Papers 129, Institute of Labor Economics (IZA).
    14. Eichhorst, Werner & Rinne, Ulf, 2016. "Promoting Youth Employment in Europe: Evidence-based Policy Lessons," IZA Policy Papers 119, Institute of Labor Economics (IZA).
    15. Dino Pinelli & Roberta Torre & Lucianajulia Pace & Laura Cassio & Alfonso Arpaia, 2017. "The Recent Reform of the Labour Market in Italy: A Review," European Economy - Discussion Papers 072, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    16. Alari Paulus & Caroline Klein, 2019. "Effects of tax-benefit policies on the income distribution and work incentives in Estonia," OECD Economics Department Working Papers 1570, OECD Publishing.
    17. Martin, John P., 2016. "Whither Activation Policies? Reflections for the Future," IZA Policy Papers 114, Institute of Labor Economics (IZA).
    18. Andrew Wright & Brian Dollery, 2020. "The impact of varying penalty values on compliance with unemployment payment requirements: An analysis using 2015/16 Australian National Data," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(1), pages 1-20.
    19. Francesca Carta & Alessandra Casarico & Marta De Philippis & Salvatore Lattanzio, 2024. "Mom's out: employment after childbirth and firm-level responses," Temi di discussione (Economic working papers) 1458, Bank of Italy, Economic Research and International Relations Area.
    20. Morescalchi Andrea & Paruolo Paolo, 2020. "Too Much Stick for the Carrot? Job Search Requirements and Search Behaviour of Unemployment Benefit Claimants," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-21, January.

    More about this item

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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