Programme Evaluation of Unemployment Benefits in Japan: An Average Treatment Effect Approach

Empirical results show that unemployment benefits (UB) recipients significantly change to worse job conditions with respect to wages and firm size, but change to better job conditions with respect to occupation, position, industry, and residence. While the effects for occupation are not significant, UB recipients have a significant tendency to stay the same. In other words, results of other conditions imply that they reduce the reservation wage to get better conditions with respect to occupation, industry and residence. This means strong inertia in these aspects.