Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2000:4: Effects of changes in the unemployment insurance eligibility requirements on job duration - Swedish evidence

Pathric Hägglund ()
Additional contact information
Pathric Hägglund: IFAU - Office of Labour Market Policy Evaluation, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden

Abstract: This paper investigates the impact of the unemployment insurance (UI) entrance requirement on employment duration in Sweden. I study employment spells in 1992, 1996, and 1998 to find behavioural adjustments in the timing of job separation. The results suggest that some adjustments have occured. Comparisons between years with different UI requirements support the conclusion. By using predicted hazard rates for each week, I calculate an approximate 3-week extension in the average duration of employment spells between 1996 and 1998.

Keywords: Employment duration; Unemployment insurance

JEL-codes: J22; J65; J68

39 pages, April 17, 2000

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