This paper has been presented at the Journal of Applied Econometrics International Conference on the Micro-Econometrics of Dynamic Decision Making, in Tilburg, May 1994. We would like to thank John Rust, Arie Kapteyn and other participants at this conference for their helpful comments. This...

This paper investigates how the potential duration of unemployment benefits affects the quality of post-unemployment jobs. It takes advantage of a natural experiment introduced by a change in Slovenia's unemployment insurance law that substantially reduced the potential benefit duration....