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Culture, Incentives, and Unemployment

Applicant Lalive d'Epinay-Gisin Rafael
Number 120356
Funding scheme Project funding (Div. I-III)
Research institution Département d'économie (DE) Faculté des Hautes Etudes Commerciales (HEC) Université de Lausanne
Institution of higher education University of Lausanne - LA
Main discipline Swiss history
Start/End 01.08.2008 - 31.07.2010
Approved amount 99'957.00
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Keywords (9)

unemployment duration; social norm; regional unemployment; unemployment; unemployment insurance; benefit replacement rate; benefit duration; retirement; culture

Lay Summary (English)

Lay summary
This project studies three key issues: (i) How (and in which way) does the unemployed workers' cultural background affect job search behavior? (ii) How do the two main parameters of unemployment insurance - the duration and the level of unemployment benefits - affect unemployment duration and post-unemployment outcomes? (iii) What are the joint effects of unemployment insurance and related social transfers (disability and early retirement programs) on job search behavior?The first question is analyzed using local comparisons across a language barrier in Switzerland. This Röstigraben separates cultural groups, but neither labor markets nor political jurisdictions. Local contrasts across the language border identify therefore the role of culture for unemployment.The second issue is studied using the policy change in the Swiss unemployment insurance in July 2003. This reform created quasi experimental variation in the benefit replacement rate and in benefit durations, which can be used to study the influence of benefit schedules on unemployment durations and post-unemployment outcomes.In the last part of the project we study how changes in the eligibility for unemployment benefits induce unemployed individuals to exit to other social insurances, i.e. to disability insurance or early retirement programs.
Direct link to Lay Summary Last update: 21.02.2013

Responsible applicant and co-applicants

Associated projects

Number Title Start Funding scheme
130114 Unemployment Insurance and Post-Unemployment Experiences 01.09.2010 Project funding (Div. I-III)
130114 Unemployment Insurance and Post-Unemployment Experiences 01.09.2010 Project funding (Div. I-III)