Projects / Programmes source: ARIS

The effects of the change of the Slovenian unemployment insurance law

Research activity

Code Science Field Subfield
5.02.00  Social sciences  Economics   

Code Science Field
S180  Social sciences  Economics, econometrics, economic theory, economic systems, economic policy 
Unemployment, unemployment insurance, post-unemployment wages
Evaluation (rules)
source: COBISS
Researchers (2)
no. Code Name and surname Research area Role Period No. of publicationsNo. of publications
1.  08994  PhD Bojan Grošelj  Manufacturing technologies and systems  Researcher  2002  73 
2.  09745  PhD Milan Vodopivec  Economics  Head  2002  264 
Organisations (1)
no. Code Research organisation City Registration number No. of publicationsNo. of publications
1.  1612  GEA College - Faculty of Entrepreneurship  Ljubljana  5939739  1,750 
Traditional unemployment insurance offers income compensation for a job loss, but it creates deleterious incentives effects: it reduces incentives of the recipients to search for a job, and it raises their reservation wage, thereby reducing the escape rate probability and increasing the equilibrium unemployment rate. The purpose of this research proposal is to evaluate the effects of changes brought by the recently amended Slovenian unemployment insurance law on (i) the probability of exit from unemployment (to both employment and inactivity), and (ii) on post-unemployment earnings. Specifically, the following two hypotheses will be tested: (1) Has the shortening of the potential duration of eligibility to unemployment benefits contributed to the shortening of unemployment spells and thus increased the escape rate from unemployment? (2) Has this shortening of potential eligibility influenced the level of post-unemployment wages? The change of legislation allows to use a quasi-experimental (“difference in differences”) approach to identify the possible effects of unemployment insurance on the behavior of the benefit recipients.The analysis will use both non-parametric and parametric models of hazard rate of exit from unemployment. It will take advantage of unusually rich administrative sources of data on individuals: personal work history, registered unemployment, and workers' earnings records.
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