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Unemployment duration and Unemployment Insurance - A Comparative Analysis Based on Scandinavian Micro Data
By Rĝed, Knut, Peter Jensen and Anna Thoursie
2006
Oxford Economic Papers, Forthcoming
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Abstract |
Based on pooled register data from Norway and Sweden, we find that differences in unemployment duration patterns reflect dissimilarities in unemployment insurance (UI) systems in a way that convincingly establishes the link between economic incen-tives and job search behaviour. Specifically, UI benefits are relatively more generous for low-income workers in Sweden than in Norway, leading to relatively longer un-employment spells for low-income workers in Sweden. Based on the between-countries variation in replacement ratios, we find that the elasticity of the outflow rate from insured unemployment with respect to the replacement ratio is approximately 1 in Norway and 0.5 in Sweden. |
| JEL Classification:
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C41, J64 |
| Keywords:
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Unemployment spells, unemployment compensation, non-parametric duration analysis. |
| Project:
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1212 Unemployment insurance in the Nordic contries
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| Contact:
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knut.roed@frisch.uio.no |
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