Scandinavian Working Papers in Economics
Working Paper Series,
Stockholm University, Swedish Institute for Social Research
No 3/2007: Effects of Changes in the Unemployment Insurance Eligibility Requirements on Job Duration - Swedish Evidence
Pathric Hägglund ()
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Pathric Hägglund: Swedish Institute for Social Research, Stockholm University, Postal: SE-106 91 Stockholm, Sweden
Abstract: This paper investigates the impact of the unemployment insurance (UI) entrance re-quirement on employment duration among earlier unemployed in Sweden. I exploit changes in the rules taking place in 1994 and 1997 to study behavioural adjustments in the timing of job separation in 1992, 1996, and 1998 respectively. Performing across-year analyses with years involving different working requirements, I find evi-dence of clustering of job exits at the time of UI qualification. By using predicted hazard rates for each week, I calculate an approximate 2.9-week extension in average employment duration between 1996 and 1998, due to the 5-week prolonging of the entrance requirement.
Keywords: -
33 pages, February 22, 2007
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