Carling, Kenneth; Holmlund, Bertil; Vejsiu, Altin - 2000
In June 1995, the Swedish parliament decided to cut the replacement rate in unemployment insurance from 80 percent to … among unemployed insured individuals. To identify the effect of the policy we exploit a quasi-experimental feature of the … benefit cut: only a fraction of the unemployed was affected by the reduction in replacement rates. We compare the evolution of …
