Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 09/2002: Unemployment Duration, Incentives and Institutions - A Micro-Econometric Analysis Based on Scandinavian Data
Knut Røed (), Peter Jensen () and Anna Thoursie ()
Additional contact information
Knut Røed: The Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, N-0349 Oslo, Norway, http://www.frisch.uio.no/frisch_eng.html,
Peter Jensen: Department of Economics, The Aarhus School of Business, Denmark, Postal: NAT , Aarhus School of Business , Prismet, Silkeborgvej 2 DK 8000 Aarhus C, http://www.asb.dk/eok/nat/nat_form.htm
Anna Thoursie: Swedish Institute for Social Research, Swedish Trade Union Confederation, Postal: Barnhusgatan 18 , 105 53 Stockholm,
Abstract: Based on a combined register database for Norwegian and Swedish unemployment spells, we use the ‘between-countries-variation’ in the unemployment insurance systems to identify causal effects. The elasticity of the job hazard rate with respect to the benefit replacement ratio is around -1.0 in Norway and -0.5 in Sweden. The limited benefit duration period in Sweden has a large positive impact on the hazard rate, despite generous renewal options through participation in labour market programs. Compulsory program participation seems to operate as a ‘stick’, rather than a ‘carrot’, and is therefore an efficienttool for counteracting moral hazard problems in the benefit system.
Keywords: Unemployment spells; unemployment compensation; non-parametric duration analysis
29 pages, June 16, 2003
Full text files
Memo-09-2002.pdf
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