This paper discusses the effects of a higher unemployment benefit replacement rate on unemployment durations, employment and earnings. A reform of the Swiss unemployment insurance in July 2003 increased the replacement rate by up to 5.88 ppt for individuals who earned between 3,536 and 4,340 CHF...

We propose a unique method of nowcasting and forecasting GDP growth based on a forward-looking measure of unemployment (FLUR) and Okun's law that offers a number of advantages over current leading indicators of the Swiss business cycle. The following investigation, covering the period from...