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The Effects of UI Benefits on Unemployment and Subsequent Outcomes: Evidence from a Kinked Benefit Rule
Oxford Bulletin of Economics and Statistics ( IF 1.5 ) Pub Date : 2020-05-05 , DOI: 10.1111/obes.12367
Tomi Kyyrä 1, 2 , Hanna Pesola 1
Affiliation  

This paper analyzes the effects of unemployment insurance (UI) benefits on unemployment exits and subsequent labor market outcomes. We exploit a piecewise linear relationship between the previous wage and UI benefits in Finland to identify the causal effects of the benefit level by using a regression kink design. According to our findings, higher benefits lengthen nonemployment spells and decrease time spent in part-time unemployment, and thus result in more full-time unemployment. Also the re-employment probability and post-unemployment wage are negatively affected. The results for the duration of the first post-unemployment job are not conclusive, but in total both employment and earnings in the two years following the beginning of the unemployment spell decrease with higher benefits.

中文翻译:

UI 福利对失业和后续结果的影响:来自扭结福利规则的证据

本文分析了失业保险 (UI) 福利对失业退出和随后的劳动力市场结果的影响。我们利用芬兰以前的工资和 UI 福利之间的分段线性关系,通过使用回归扭结设计来确定福利水平的因果关系。根据我们的研究结果,更高的福利会延长失业期并减少兼职失业的时间,从而导致更多的全职失业。再就业概率和失业后工资也受到负面影响。第一份失业后工作的持续时间的结果不是决定性的,但在失业期开始后的两年内,就业和收入的总和随着福利的增加而下降。
更新日期:2020-05-05
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