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How does a declining sequence of UI replacement rates affect the hazard to employment?

In this project, we examine how the 2007 reforms of unemployment insurance (UI) affected the duration of unemployment. Among other things, the 2007 reforms introduced a declining sequence of UI payments over the spell of unemployment and the maximum UI payment during the first 100 days of UI receipt was reduced.

The nature of these reforms implies that we can ask two types of questions. First, we can examine the direct effect of changes in UI compensation. Second, we can examine whether information on future changes in UI compensation affects the behaviour when the information becomes public. The analysis is based on data from the IFAU database.

Published by:

Anahid Zakinian