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Author:Tatsiramos, K.
Title:Unemployment insurance in Europe: Unemployment duration and subsequent employment stability
Journal:Journal of the European Economic Association
2009 : DEC, VOL. 7:6, p. 1225-1260
Index terms:unemployment
unemployment duration
unemployment insurance
Language:eng
Abstract:This article examines the effect of unemployment insurance on unemployment and subsequent employment duration in Europe using individual data from the European Community Household Panel. The multivariate discrete-time duration model, which takes into account dynamic selection issues and the endogeneity of benefit receipt, suggests that although receiving benefits has an adverse effect in the sense of increasing unemployment duration, there is also a positive effect associated with the increased duration of subsequent employment. This beneficial effect of unemployment insurance on employment stability is strong in countries with relatively generous benefit systems, and for recipients who have remained unemployed for at least six months.
SCIMA record nr: 270508
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