In this paper we consider a risk averse worker who is moving back and forth between employment and unemployment … wealth decreases, a finding which is in accordance with our empirical duration analysis using micro data on unemployment … positive duration dependence over unemployment spells via its inverse relationship with the worker s wealth. …

the maximum duration of benefits for three groups of agents and maintained all features of the unemployment insurance for …We test the predictions of an equilibrium search model about the effects of an increase in the maximum duration of … unemployment benefits. We use the 1999 unemployment insurance reform of Portugal, a quasi-natural experiment. The reform increased …