Working Paper: CEPR ID: DP2061
Authors: John Micklewright; Gyula Nagy
Abstract: The single most likely way to leave the unemployment insurance (UI) register in Hungary is not by getting a job but by exhausting entitlement to benefit. Two questions follow. First, what are the implications of the cessation of UI for living standards? Second, does UI exhaustion have much effect on the probability of getting a job through increasing incentives to work? We investigate these issues with a survey of persons exhausting entitlement to UI in Summer 1995, paying special attention to the household circumstances of the unemployed and to the probabilities of claiming and being awarded means-tested assistance benefit.
Keywords: living standards; incentives; Hungary; unemployment insurance; social assistance
JEL Codes: I38; J64; J65
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Unemployment Insurance (UI) exhaustion (J65) | significant drop in household income (G59) |
| Unemployment Insurance (UI) exhaustion (J65) | income decline for women without employed spouses (J12) |
| Unemployment Insurance (UI) exhaustion (J65) | income decline for individuals with employed partners (J31) |
| Unemployment Insurance (UI) exhaustion (J65) | probability of finding a job (J68) |
| Job search timing (C41) | Unemployment Insurance (UI) exhaustion (J65) |