Unemployment insurance and youth labor market entry

Mathias von Buxhoeveden ()
Additional contact information
Mathias von Buxhoeveden: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden

No 2019:12, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper estimates the effects of unemployment insurance (UI) benefits on job finding rates and entry level wages for unemployed high school leavers. Up to year 2007, Swedish high school-students who became unemployed shortly after graduation were entitled to UI-benefits once they became 20 years of age. Therefore, the start of an unemployment spell relative to the 20:th birthday creates potentially exogenous variation in time to treatment. I exploit this to estimate the effect of UI benefits on unemployment duration and entry level wages. The results show that there is a large and statistically significant negative effect of UI benefits on the employment hazard. There are no detectable effects on entry level wages. This would suggest that unemployment benefits induce high school leavers to postpone labor market entry but does not seem to effect job match quality.

Keywords: youth; unemployment; insurance; labor; market; entry (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2019-06-04
New Economics Papers: this item is included in nep-eur, nep-ias and nep-lab
Note: Read WP 2019:12 here: https://www.ifau.se/globalassets/pdf/se/2019/wp-2019-12-unemployment-insurance-and-youth-labor-market-entry.pdf
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.ifau.se/globalassets/pdf/se/2019/wp-20 ... bor-market-entry.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifauwp:2019_012

Access Statistics for this paper

More papers in Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy IFAU, P O Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Ali Ghooloo ( this e-mail address is bad, please contact ).