We document the effects of a change in the Italian Ordinary Unemployment Benefits Scheme on the job search process. As of January 2001, the replacement rate was raised from 30% to 40% and benefits' duration extended from 6 to 9 months for workers aged 50 or more. Our results show that (a) the...

We document the effects of a change in the replacement rate and potential duration of the Italian Ordinary unemployment benefits scheme on the job search process. As of January 2001, benefits were extended from 6 to 9 months selectively for workers aged 50 or more, and the replacement rate was...