Many countries have a two-tiered unemployment compensation system which provides earnings-related unemployment … insurance for a limited period of time and less generous unemployment assistance thereafter. This study evaluates the effects of … a reform in Finland that increased the level of unemployment assistance by 22%. The reform led to a drop of 9% in the …

Conventional models of equilibrium unemployment typically imply that proportional taxes on labor earnings are neutral … with respect to unemployment as long as the tax does not affect the replacement rate provided by unemployment insurance, i ….e., unemployment benefits relative to after-tax earnings. When home production is an option, the conventional results may no longer …

In June 1995, the Swedish parliament decided to cut the replacement rate in unemployment insurance from 80 percent to … reform caused an increase in the transition rate of roughly 10 percent. There is also evidence of anticipatory behavior among …