Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
How do extended benefits affect unemployment duration? A regression discontinuity approach
Abstract: 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 50 years 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. Results indicate 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.
Keywords: benefit duration; unemployment duration; early retirement; regression discontinuity; (follow links to similar papers)
JEL-Codes: C41; J64; J65; (follow links to similar papers)
30 pages, July 6, 2006
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