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likely consequence of a reduction of the level of benefit that occurs at that point. Interestingly, post-unemployment wages … reduction of benefits were not produced by reduced reservation wages (higher acceptance probability) but rather more effective …
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"This paper studies the effect of unemployment benefits on the unemployment and subsequent employment duration using individual data from the European Community Household Panel, for France, Germany, and the UK. The empirical analysis is based on a two-state mixed proportional hazard model...
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