TY  - RPRT
        AU  - Kyyrä, Tomi
        TI  - The Effects of Unemployment Assistance on Unemployment Exits
        PY  - 2021/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14194
        UR  - https://www.iza.org/publications/dp14194
        AB  - 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.
        KW  - unemployment assistance
KW  - labor market subsidy
KW  - hazard rate
KW  - unemployment duration
        ER  -