Job search requirements for older unemployed: Transitions to employment, early retirement and disability benefits

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

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.
Original languageEnglish
Pages (from-to)31-57
Number of pages27
JournalEuropean Economic Review
Volume58
Issue numberC
DOIs
Publication statusPublished - 2013

Fingerprint

Job search
Disability benefits
Early retirement
Policy change
Duration models
Regression discontinuity
Disability insurance
Difference-in-differences
Employment rate
Side effects
The Netherlands

Cite this

@article{0ae0ec1b0fd14b6f8774d65ac73be5d8,
title = "Job search requirements for older unemployed: Transitions to employment, early retirement and disability benefits",
abstract = "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. {\circledC} 2012 Elsevier B.V.",
author = "M. Lammers and H.G. Bloemen and S. Hochguertel",
year = "2013",
doi = "10.1016/j.euroecorev.2012.11.003",
language = "English",
volume = "58",
pages = "31--57",
journal = "European Economic Review",
issn = "0014-2921",
publisher = "Elsevier",
number = "C",

}

Job search requirements for older unemployed: Transitions to employment, early retirement and disability benefits. / Lammers, M.; Bloemen, H.G.; Hochguertel, S.

In: European Economic Review, Vol. 58, No. C, 2013, p. 31-57.

Research output: Contribution to JournalArticleAcademicpeer-review

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

VL - 58

SP - 31

EP - 57

JO - European Economic Review

JF - European Economic Review

SN - 0014-2921

IS - C

ER -