Duration of UI periods and the perceived threat effect from labour market programmes
| Autor: | Lars Pico Geerdsen, Anders Holm |
|---|---|
| Rok vydání: | 2007 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics Labour economics media_common.quotation_subject Spell Entitlement Hazard rates Hazard language.human_language Danish Threat effect Unobserved heterogeneity Active labour market measures Unemployment Economics language Duration (project management) media_common |
| Zdroj: | Geerdsen, L P & Holm, A 2007, ' Duration of UI periods and the perceived threat effect from labour market programmes ', Labour Economics, vol. 14, no. 3, pp. 639-652 . https://doi.org/10.1016/j.labeco.2006.06.001 |
| ISSN: | 0927-5371 |
| Popis: | In this paper, we study whether the prospect of compulsory programme participation motivates individuals to leave the unemployment insurance (UI) system prior to participation. In some systems, individuals may experience very different risks of enrolment even when they face identical formal rules. If individuals learn that programme enrolment does not deterministically follow regulations, estimated effects based solely on institutional regulations may be downward biased. This means that the true effect of potential enrolment may be underestimated. We analyse data from the Danish labour market which includes information on a series of reforms that have enforced programme participation in return for unemployment benefit entitlement. First, we find that unemployed individuals do indeed have different risk of compulsory enrolment even when regulations indicate that the risk should be identical. Second, we find that individuals do react strongly and significantly to the prospect of programme enrolment. However, since individuals experience different risks of programme enrolment, the resulting response observed in individuals' hazard out of unemployment is also different as the unemployment spell progresses. |
| Databáze: | OpenAIRE |
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