@TechReport{iza:izadps:dp492, author={Lalive, Rafael and Zweimüller, Josef}, title={Benefit Entitlement and Unemployment Duration: The Role of Policy Endogeneity}, year={2002}, month={May}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={492}, url={https://www.iza.org/publications/dp492}, abstract={The potential duration of benefits is generally viewed as an important determinant of unemployment duration. This paper evaluates a unique policy change that prolonged entitlement to regular unemployment benefits from 30 weeks to a maximum of 209 weeks for elderly individuals in certain regions of Austria. In the evaluation, we explicitly account for the fact that the program was an endogenous policy response to a crisis affecting individuals with severe labor market problems. The main results are: (i) REBP reduced the transition rate to jobs by 17 %; (ii) accounting for endogenous policy adoption is important and quantitatively significant.}, keywords={maximum benefit duration;quasi-experiments;unemployment duration;unemployment insurance;benefit entitlement;policy endogeneity}, }