Shortening the Potential Duration of Unemployment Benefits does not affect the Quality of Post-Unemployed Jobs: Evidence from a Natural Experiment

J.C. van Ours, M. Vodopivec

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Abstract

This paper investigates how the potential duration of unemployment benefits affects the quality of post-unemployment jobs.It takes advantage of a natural experiment introduced by a change in Slovenia's unemployment insurance law that substantially reduced the potential benefit duration.Although this reduction strongly increased job finding rates, the quality of the postunemployment jobs remained unaffected: the paper finds that the law change had no effect on either the type of the contract (temporary vs. permanent), the duration of the post-unemployment jobs, or the wage earned in this job.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages34
Volume2006-56
Publication statusPublished - 2006

Publication series

NameCentER Discussion Paper
Volume2006-56

Keywords

  • Unemployment insurance
  • potential benefit duration
  • job separation rates
  • post-unemployment wages

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