Guaranteed minimum income and unemployment duration in France |
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| Authors: | Antoine Terracol |
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| Affiliation: | 1. Department of Optics, University of Granada, Granada 18071, Spain;2. Department of Civil Engineering, University of Granada, Granada 18071, Spain;1. Dipartimento di Economia e Giurisprudenza, Università degli studi di Cassino e del Lazio Meridionale, Cassino (FR), Italy;2. Dipartimento di Economia, Management e Metodi Quantitativi, Università degli studi di Milano, Milano, Italy;3. Dipartimento di Economia e Finanza, LUISS University, Roma, Italy;4. Centro De Giorgi, Scuola Normale Superiore, Pisa, Italy;5. Università degli studi di Torino, Collegio Carlo Alberto and CeRP, Torino, Italy;1. Departamento de Física, Universidade Estadual de Maringá - Maringá, PR 87020-900, Brazil;2. Departamento de Física, Universidade Tecnológica Federal do Paraná - Apucarana, PR 86812-460, Brazil;3. National Institute of Science and Technology for Complex Systems, CNPq - Rio de Janeiro, RJ 22290-180, Brazil |
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| Abstract: | In this article, we use data from the European Community Household Panel to evaluate the impact of a French guaranteed income program, the RMI, on the hazard out of unemployment. Self-selection into the program is corrected using a multivariate duration model developed by [Abbring, J.H., van den Berg, G.J., 2003. The non-parametric identification of treatment effects in duration models. Econometrica 71 (5), 1491–1517]. We find that RMI receipt has a strong negative impact during the first months of program participation, but that this disincentive effect quickly falls to insignificant levels after six months. Household structure also appears to be an important determinant of the importance of the adverse effect of program participation. |
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