TY - JOUR
T1 - Job search requirements for older unemployed: Transitions to employment, early retirement and disability benefits
AU - Lammers, M.
AU - Bloemen, H.G.
AU - Hochguertel, S.
PY - 2013
Y1 - 2013
N2 - We use a recent policy change in the Netherlands to study how changes in search requirements for the older unemployed affect their transition rates to employment, early retirement and sickness/disability benefits. The reform, becoming effective on January 1 2004, requires the elderly to formally report their job search efforts to the employment office in order to avoid a (temporary) cut in benefits. Before the new law was passed, unemployed individuals were allowed to stop all search activity at the moment they turned 57.5. Estimating various duration models using difference-in-difference and regression discontinuity approaches, we find that for several groups of individuals who are affected by the policy change, the stricter search requirements significantly increases their entry rate into employment. However, we also find evidence of a higher outflow to sickness/disability insurance schemes, a presumably unwanted side-effect of the policy change. © 2012 Elsevier B.V.
AB - We use a recent policy change in the Netherlands to study how changes in search requirements for the older unemployed affect their transition rates to employment, early retirement and sickness/disability benefits. The reform, becoming effective on January 1 2004, requires the elderly to formally report their job search efforts to the employment office in order to avoid a (temporary) cut in benefits. Before the new law was passed, unemployed individuals were allowed to stop all search activity at the moment they turned 57.5. Estimating various duration models using difference-in-difference and regression discontinuity approaches, we find that for several groups of individuals who are affected by the policy change, the stricter search requirements significantly increases their entry rate into employment. However, we also find evidence of a higher outflow to sickness/disability insurance schemes, a presumably unwanted side-effect of the policy change. © 2012 Elsevier B.V.
U2 - 10.1016/j.euroecorev.2012.11.003
DO - 10.1016/j.euroecorev.2012.11.003
M3 - Article
SN - 0014-2921
VL - 58
SP - 31
EP - 57
JO - European Economic Review
JF - European Economic Review
IS - C
ER -