La noticia econòmica de la setmana

When the government expands the duration of unemployment benefits, unemployment duration increases. Notice the spike in the proportion of people who find jobs right before unemployment benefits expire in Denmark.
Denmark is a good place to check these facts because unemployment benefits are long term and because the duration of the benefits has changed dramatically lately. When unemployment benefits lasted up to 5 years (in 1998), people found jobs during the second half of the fifth year. When duration changed to 4 years (in 2005) people found jobs during the last few months of the fourth year. Coincidence or people trying to take advantage of the public sector?




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