How Shortening the Potential Duration of Unemployment Benefits Affects the Duration of Unemployment: Evidence from a Natural Experiment

A-Tier
Journal: Journal of Labor Economics
Year: 2006
Volume: 24
Issue: 2
Pages: 351-378

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this article we investigate the disincentive effects of shortening the potential duration of unemployment insurance (UI) benefits. We identify these disincentive effects by exploiting changes in Slovenia's unemployment insurance system—a "natural experiment" that involved substantial reductions in the potential duration of benefits for four groups of workers plus no change in benefits for another group (which served as a natural control). We find that the change had a positive effect on the exit rate from unemployment—to new jobs and other options—for unemployment spells of various lengths and for several categories of unemployed workers.

Technical Details

RePEc Handle
repec:ucp:jlabec:v:24:y:2006:i:2:p:351-384
Journal Field
Labor
Author Count
2
Added to Database
2026-01-29