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The effect of declining unemployment benefits on transitions to employment: Evidence from Belgium

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  • Andrea Salvatori

Abstract

This paper provides new evidence on the effect of the 2012 reform on flows from UB to employment. The reform increased the steepness of the time profile of unemployment benefits by raising the initial benefit, lowering its long-term level and increasing the number of steps in-between. The analysis finds no indication that the 2012 reform of the Belgian UB system led to an increase in flows towards employment or inactivity either in the aggregate or when comparing groups of workers whose benefits were affected to different extents. While the results of this paper and recent literature provide little ground in favour of a further accentuation of the steepness of the time profile of UB in Belgium, the system could likely benefit from a simplification of the rules that would enhance its readability for workers and facilitate its administration and evaluation.

Suggested Citation

  • Andrea Salvatori, 2022. "The effect of declining unemployment benefits on transitions to employment: Evidence from Belgium," OECD Social, Employment and Migration Working Papers 272, OECD Publishing.
    • Handle: RePEc:oec:elsaab:272-en
    DOI: 10.1787/cba7af24-en
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    More about this item

    Keywords

    Unemployment; Unemployment benefits; Unemployment insurance;
    All these keywords.

    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
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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