Extended Unemployment Benefits and Early Retirement: Program Complementarity and Program Substitution

• 成果类型: Article
• 署名作者: Inderbitzin, Lukas; Staubli, Stefan; Zweimueller, Josef
• 署名单位: University of St Gallen; University of Calgary; IZA Institute Labor Economics; University of Zurich; Leibniz Association; Ifo Institut; IZA Institute Labor Economics
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20130315
• 发表日期: 2016
• 页码: 253-288
• 关键词: Regression discontinuity; disability insurance; duration; EMPLOYMENT; search; IMPACT; AGE; entitlement; extension; MARKET

摘要

We explore how extended unemployment insurance (UI) benefits for older workers affect early retirement and welfare. We argue that extending UI benefits generates program complementarity (more labor market exits and disability benefit take-up in the future) and program substitution (less disability benefit take-up in the present). Exploiting a policy change in Austria, which extended UI benefits to 4 years, we find program complementarity effects for workers aged 50+ and program substitution effects for workers aged 55+. We apply the Baily-Chetty formula for optimal UI to account for complementarity and substitution, showing that UI benefits for older workers were too generous.