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Does an increase in unemployment income lead to longer unemployment spells? Evidence using Danish unemployment assistance data

Research output: Working paperResearch

  • Ott-Siim Toomet, Denmark
  • Afdeling for Nationaløkonomi
Danish unemployment assistance depends on age; it increases by 70% when unemployedindividuals turn 25. This feature is used to identify the impact of income on theunemployment-to-employment hazard rate. A mixed proportional hazard frameworkbased on a 10% representative Danish registry data set is used. The results indicatethat the income effect for females is negative and significant, corresponding to an income elasticity of -0.4. The effect for males is positive but insignifcant.
Original languageEnglish
Number of pages40
Publication statusPublished - 2005

    Research areas

  • welfare benefts, incentive effect, unemployment duration

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ID: 131984