TY - JOUR
T1 - Unemployment insurance in europe: Unemployment duration and subsequent employment stability
AU - Tatsiramos, Konstantinos
PY - 2009/12
Y1 - 2009/12
N2 - This paper provides evidence on the effect of unemployment insurance on unemployment and subsequent employment duration in Europe using individual data from the European Com-munity Household Panel. Country-specific estimates based on a multivariate discrete-time duration model, which takes into account dynamic selection issues and the endogeneity of benefit receipt, suggest 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 pronounced in countries with relatively generous benefit systems, and for recipients who have remained unemployed for at least six months. These findings are in line with theories that suggest a matching effect of unemployment insurance.
AB - This paper provides evidence on the effect of unemployment insurance on unemployment and subsequent employment duration in Europe using individual data from the European Com-munity Household Panel. Country-specific estimates based on a multivariate discrete-time duration model, which takes into account dynamic selection issues and the endogeneity of benefit receipt, suggest 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 pronounced in countries with relatively generous benefit systems, and for recipients who have remained unemployed for at least six months. These findings are in line with theories that suggest a matching effect of unemployment insurance.
UR - https://www.mendeley.com/catalogue/dc61a6ff-2675-37cf-983f-a551b194c622/
U2 - 10.1162/JEEA.2009.7.6.1225
DO - 10.1162/JEEA.2009.7.6.1225
M3 - Article
SN - 1542-4774
VL - 7
SP - 1225
EP - 1260
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 6
ER -