Duration of UI periods and the perceived threat effect from labour market programmes |
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| Affiliation: | 1. School of Psychology, Bangor University, UK;2. Department of Child and Adolescent Psychiatry, Psychotherapy, and Psychosomatics, University of Freiburg, Germany;3. Institute of Medical and Social Care Research, Bangor University, UK;4. Department of Psychiatry and Psychotherapy, University of Freiburg, Germany;5. Institute of Psychology, University of Bonn, Germany;6. Department of Child and Adolescent Psychiatry, Psychosomatics and Psychotherapy, Medical Faculty, University of Cologne, Germany;1. Department of Psychology, Umeå University, Umeå, Sweden;2. School of Psychology, Cardiff University, UK;3. Department of Psychology, University of the Balearic Islands, Spain;4. School of Psychology, University of Western Australia, Australia;1. Department of Cardiovascular Medicine, University of Tokyo Graduate School of Medicine, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-8655, Japan;2. Department of Ischemic Circulatory Physiology, 22nd Century Medical and Research Center, University of Tokyo Hospital, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-8655, Japan;3. Department of Cardiovascular Medicine, Teikyo University Chiba Medical Center, 3426-3 Anegasaki, Ichihara 299-0111, Japan;4. Department of Cardiovascular Medicine, Institute of Health Biosciences, The University of Tokushima Graduate School of Medicine, 2-10-1 Kuramoto-cho, Tokushima 770-8503, Japan;5. Department of Medicine-Cardiology/Cell and Molecular Biology, Karolinska Institutet, SE-171 77 Stockholm, Sweden |
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| Abstract: | In this paper, we study whether the prospect of compulsory programme participation motivates individuals to leave the unemployment insurance (UI) system prior to participation. In some systems, individuals may experience very different risks of enrolment even when they face identical formal rules. If individuals learn that programme enrolment does not deterministically follow regulations, estimated effects based solely on institutional regulations may be downward biased. This means that the true effect of potential enrolment may be underestimated. We analyse data from the Danish labour market which includes information on a series of reforms that have enforced programme participation in return for unemployment benefit entitlement. First, we find that unemployed individuals do indeed have different risk of compulsory enrolment even when regulations indicate that the risk should be identical. Second, we find that individuals do react strongly and significantly to the prospect of programme enrolment. However, since individuals experience different risks of programme enrolment, the resulting response observed in individuals' hazard out of unemployment is also different as the unemployment spell progresses. |
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