Lindner, A;
Reizer, B;
(2020)
Frontloading the Unemployment Benefit: An Empirical Assessment.
American Economic Journal: Applied Economics
, 12
(3)
pp. 140-174.
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Abstract
We estimate the effect of frontloading unemployment benefit payments on non-employment duration and re-employment wages. Exploiting a sharp change in the path of benefits for those who claimed unemployment benefit after November 1 2005 in Hungary, we show that nonemployment duration fell by two weeks, while re-employment wages rose by 1.4 percent as result of frontloading. We show that these behavioral responses were large enough to offset the mechanical cost increase of the unemployment insurance. We argue that our results indicate that benefit frontloading was a Pareto improving policy reform as both unemployed and employed workers were made better off.
| Type: | Article |
|---|---|
| Title: | Frontloading the Unemployment Benefit: An Empirical Assessment |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | https://www.aeaweb.org/articles?id=10.1257/app.201... |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10081315 |
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