Does reducing unemployment insurance generosity reduce job match quality?

Abstract

This paper analyzes how a change in Slovenia's unemployment insurance law affected the quality of jobs workers found after periods of unemployment. Taking advantage the "natural experiment" we show through difference-in-differences estimation results that reducing the potential duration of unemployment benefits had no detectable effect on wages, on the probability of securing a permanent rather than a temporary job, or on the duration of the post-unemployment job. © 2007 Elsevier B.V. All rights reserved.