%0 Report
        %A Kyyrä, Tomi
        %T The Effects of Unemployment Assistance on Unemployment Exits
        %D 2021
        %8 2021 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 14194
        %U https://www.iza.org/publications/dp14194
        %X Many countries have a two-tiered unemployment compensation system which provides earnings-related unemployment insurance for a limited period of time and less generous unemployment assistance thereafter. This study evaluates the effects of a reform in Finland that increased the level of unemployment assistance by 22%. The reform led to a drop of 9% in the unemployment exit hazard, which can be attributed to fewer exits to both employment and inactivity. The implied elasticities suggest that a 10% increase in unemployment assistance reduces the unemployment exit hazard by 4% and the job finding hazard by 6%. These effects are relatively small compared to the existing evidence on the effects of unemployment insurance benefits.
        %K unemployment assistance
%K labor market subsidy
%K hazard rate
%K unemployment duration