Unemployment duration, incentives and institutions: A micro-econometric analysis based on Scandinavian data

摘要

Based on a combined register database for Norwegian and Swedish unemployment spells, we use the u2018between-countries-variationu2019 in the unemployment insurance systems to identify causal effects. The elasticity of the job hazard rate with respect to the benefit replacement ratio is around -1.0 in Norway and -0.5 in Sweden. The limited benefit duration period in Sweden has a large positive impact on the hazard rate, despite generous renewal options through participation in labour market programs. Compulsory program participation seems to operate as a u2018sticku2019, rather than a u2018carrotu2019, and is therefore an efficienttool for counteracting moral hazard problems in the benefit system.