-state unemployment rate. We draw on policy changes in Austria that extended maximum benefit duration from 30 to 52 weeks for individuals … impact of benefit duration on labor market flows and find that (i) the policy changes lead to an increase in the steady …-state unemployment rate between 20% and 50%; (ii) surprisingly, most of the increase is due to an increase in the inflow into …

The empirical literature on unemployment insurance has focused on its direct effect on unemployment duration, while the … unemployment insurance system aiming at reducing high European unemployment rates should consider both effects. This paper provides … evidence on the effect of unemployment benefits on unemployment and employment duration in Europe, using individual data from …