Job-search requirements for unemployed at the end of working life: effects on unemployment dynamics and self-employment probabilities

This paper investigates the extent to which job search requirements in unemployment insurance (U.I.) increase the probability of self-employment as a retirement route. For causal identification, we apply a difference-in-differences approach, using a Dutch 2004 policy reform that introduced job-search requirements in U.I. for persons aged 57.5 and older. Unemployment dynamics and self-employment probabilities are studied using a dynamic multinomial logit model with unobserved heterogeneity. The results suggest that job-search requirements stimulated people to exit unemployment and discouraged older workers to enter unemployment. The probability of self-employment as an exit route to retirement increased relative to U.I., but not relative to paid employment.

Netspar, Network for Studies on Pensions, Aging and Retirement, is een denktank en kennisnetwerk. Netspar is gericht op een goed geïnformeerd pensioendebat.


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