Data from Unemployment in Britain, Economica, 1986, 53, 5121-5169. Firm-level panel data, 1976 to 1984 on 140 firms. Used in Arellano and Bond, Rev. Econ. Stud. 1991, referenced in Stata manual (xtabond) and Ox manual for DPD package.

Our conclusions are that the most important influences on unemployment come from the following. (i) The longer unemployment benefits are available the longer unemployment lasts. Similarly, higher levels of benefits generate higher unemployment, with an elasticity of around one half. On the other...