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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title How do Extended Benefits affect Unemployment Duration? A Regression Discontinuity Approach
Organization Unit
Authors
  • Rafael Lalive
Language
  • English
Institution University of Zurich
Series Name Working paper series / Institute for Empirical Research in Economics
Number No. 294
ISSN 1424-0459
Date 2006
Abstract Text This paper studies a program that extends the maximum duration of unemployment benefits from 30 weeks to 209 weeks. Interestingly, this program is targeted to individuals aged 50nyears or older, living in certain eligible regions in Austria. In the evaluation, I use sharp discontinuities in treatment assignment at age 50 and at the border between eligible regions and control regions to identify the effect of extended benefits on unemployment duration. Resultsnindicate that the duration of job search is prolonged by at least .09 weeks per additional week of benefits among men, whereas unemployment duration increases by at least .32 weeks per additional week of benefits among women. The salient differences between men and women are consistent with the lower minimum age for early retirement applying to women.
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