The effect of unemployment benefits on re-employment rates: Evidence from the Finnish unemployment insurance reform

Uusitalo, Roope; Verho, Jouko

doi:10.1016/j.labeco.2010.02.002

Cited by 32 publications

(23 citation statements)

References 18 publications

(24 reference statements)

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“…At the same time the severance pay system was abolished . Uusitalo and Verho () using this policy change to analyze the effect of the UI replacement rate on unemployment duration find that the change in the benefit structure reduced the re‐employment hazards on average by 17%. The effect is largest at the beginning of the unemployment spell and disappears after the eligibility for the increased benefits expires.…”

Section: Incentives Related To Unemployment Insurance: Empirical Evidmentioning

confidence: 99%

Labor Market Effects of Unemployment Insurance Design

Tatsiramos

Ours

2012

Journal of Economic Surveys

126

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With the emergence of the Great Recession unemployment insurance (UI) is once again at the heart of the policy debate. In this paper, we focus on the recent theoretical and empirical evidence on the labor market e↵ects of UI design. We provide an overview of the design of UI in various countries and we discuss policy issues related to the structure of the UI system, including the pros and cons of a UI system in which the generosity of UI benefits is varying over the business cycle. Finally, we identify potential areas of future research on UI design.

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Section: Incentives Related To Unemployment Insurance: Empirical Evidmentioning

confidence: 99%

Labor Market Effects of Unemployment Insurance Design

Tatsiramos

Ours

2012

Journal of Economic Surveys

126

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“…173 284. Uusitalo and Verho (2007) compare the re-employment hazard profiles between people who became eligible for the increased benefits in 2003 with people in a comparison group whose benefit structure remained unchanged. This comparison suggests that entitlement to the higher benefit rate 171.…”

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confidence: 99%

Activation Policies in Finland

Grubb

Singh

Tergeist

2009

OECD Social, Employment and Migration Working Papers

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JT03274864 www.oecd.org/els/workingpapersThis series is designed to make available to a wider readership selected labour market, social policy and migration studies prepared for use within the OECD. Authorship is usually collective, but principal writers are named. The papers are generally available only in their original language -English or Frenchwith a summary in the other.Comment on the series is welcome, and should be sent to the Directorate for Employment, Labour and Social Affairs, 2, rue André-Pascal, 75775 PARIS CEDEX 16, France.The opinions expressed and arguments employed here are the responsibility of the author(s) and do not necessarily reflect those of the OECD ABSTRACTThis report examines the performance of the Public Employment Service (PES) and the effectiveness of activation strategies in Finland. It covers the role of the key actors, the placement function of the PES, the structure of out-of-work benefits and the related incentives and disincentives for taking up work, and provides an overview of the different active labour market programmes (ALMPs).After reaching extremely high levels in the early 1990s, unemployment in Finland declined steadily until the onset of the current economic downturn which has seen a rapid increase in the number of jobseekers. In the short term, the main challenge is to combat high and potentially persistent unemployment. In the longer term, given the ageing population and the likelihood of skills shortages, the focus should be on promoting participation of under-represented groups in the labour market while also investing further in skills.The broadly-defined PES includes a variety of actors at the national, regional and local levels. Local Employment Offices enjoy a high degree of autonomy in providing employment services but their work is not sufficiently coordinated at the central level. The payment of unemployment benefits and ALMPs are managed by separate bodies, and local Labour Committees implement labour market conditions for benefit eligibility. Municipalities, which administer social assistance benefits, also provide some employment services for their unemployed clients. In 2004, separate labour force service centres (LAFOS) were introduced with staff detached from the local Employment Offices, municipal services, and in some cases from the national social security institution, to provide specialised assistance for hard-to-place jobseekers. Since 2006, municipalities finance half the cost of the previously nationally-funded unemployment assistance for long-term unemployed, while the State finances half the cost of the basic assistance elements of social assistance payments.Activation measures have been improved for more than a decade. Since 1998, assistance benefit recipients have been increasingly referred to active programmes, and an activation plan procedure was introduced in 2001 and strengthened in 2006. However, the unemployed are required to participate in the drawing-up of an "individual job-search plan" only after some months of unemployment, an...

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“…Indeed, the size of the benet increase (about 15% on average) was chosen in a such way that the amount of the cumulative benet increase over 150 days roughly equals the abolished severance pay for an average recipient. See Uusitalo and Verho (2010) for an evaluation of the eect of the benet increase.…”

Section: Data Sourcesmentioning

confidence: 99%

Estimating the Effects of Potential Benefit Duration Without Variation in the Maximum Duration of Unemployment Benefits

Kyyrä

Pesola

2017

SSRN Journal

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The effect of unemployment benefits on re-employment rates: Evidence from the Finnish unemployment insurance reform

Cited by 32 publications

References 18 publications

Labor Market Effects of Unemployment Insurance Design

Labor Market Effects of Unemployment Insurance Design

Activation Policies in Finland

Estimating the Effects of Potential Benefit Duration Without Variation in the Maximum Duration of Unemployment Benefits

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