The Effect of Unemployment Benefits on Labour Market Behaviour in Luxembourg

• Authors: Longford Nicholas T. , Salagean Ioana C.
• Languages of publication: EN

Abstracts

EN

We apply the potential outcomes framework to estimate the effect of awarding unemployment benefits on gaining long-term employment after an unemployment spell and on the time it takes to achieve it. We conclude that such awards, regarded as a treatment, are associated with poorer labour force outcomes than no awards.

Keywords

EN

administrative register; labour market; propensity matching; unemployment spells

• Publisher: Główny Urząd Statystyczny
• Journal: Statistics in Transition new series
• Year: 2013
• Volume: 14
• Issue: 2
• Pages: 249-272

Contributors

author

Longford Nicholas T.

• Universitat Pompeu Fabra

author

Salagean Ioana C.

• CEPS/INSTEAD

References

• ABADIE, A., IMBENS, G., (2006). Large sample properties of matching estimators for average treatment effects. Econometrica 74, 235–267.
• CARD, D., LEVINE, P. B., (2000). Extended benefits and the duration of UI spells: evidence from the New Jersey extended benefit program. Journal of Public Economics 78, 107–138.
• CARLING, K., HOLMLUND, B., VEJSIU, A., (2001). Do benefit cuts boost job finding? Swedish evidence from the 1990s. Economic Journal, 111, 766–790.
• CRUMP, R.K., HOTZ, V. J., IMBENS, G. W., MITNIK, O. A., (2009). Dealing with limited overlap in estimation of average treatment effects. Biometrika 96, 187–199.
• HIRANO, K., IMBENS, G., RIDDER, G., (2003). Efficient estimation of average treatment effects using the estimated propensity score. Econometrica 71, 1161–1189.
• HOLLAND, P. W., (1986). Statistics and causal inference. Journal of the American Statistical Association 81, 945–970.
• HUNT, J., (1995). The effect of unemployment compensation on unemployment duration in Germany. Journal of Labor Economics 13, 88–120.
• LALIVE, R., ZWEIMÜLLER, J., (2004). Benefit entitlement and unemployment duration: The role of policy endogeneity. Journal of Public Economics 88, 2587–2616.
• LALIVE, R., VAN OURS, J., ZWEIMÜLLER, J., (2006). How changes in financial incentives affect the duration of unemployment. Review of Economic Studies 73, 1009–1038.
• LECHNER, M., (2002). Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods. Journal of the Royal Statistical Society Series A 165, 59–82.
• LONGFORD, N. T., NICODEMO, C., NÚÑEZ, M., NÚÑEZ, E., (2011). Well-being and obesity of rheumatoid arthritis patients. Health Services and Outcomes Research Methodology 11, 27–43.
• ROED, K., ZHANG, T., (2003). Does unemployment compensation affect unemployment duration? Economic Journal 113, 190–206.
• ROSENBAUM, P. R., (2002). Observational Studies, 2nd ed. Springer-Verlag, New York.
• ROSENBAUM, P. R., RUBIN, D. B., (1983). On the central role of the propensity score in matching. Biometrika 70, 41–55.
• RUBIN, D. B., (1974). Estimating causal effects of treatments in randomized and nonrandomized studies. Journal of Educational Psychology 66, 688–701.
• RUBIN, D. B., (2002). Multiple Imputation for Nonresponse in Surveys. Wiley and Sons, New York.
• RUBIN, D. B., (2006). Matched Sampling for Causal Effects. Wiley and Sons, New York.
• RUBIN, D. B., THOMAS, N., (1996). Matching using estimated propensity scores: Relating theory to practice. Biometrics 52, 249–264.
• UUSITALO, R., VERHO, J., (2010). The effect of unemployment benefits on re-employment rates: Evidence from the Finnish unemployment insurance reform. Labour Economics 17, 643–654.