The effect of declining unemployment benefits on transitions to employment
Evidence from Belgium
This paper provides new evidence on the effect of the 2012 reform on flows from UB
to employment. The reform increased the steepness of the time profile of unemployment
benefits by raising the initial benefit, lowering its long-term level and increasing
the number of steps in-between. The analysis finds no indication that the 2012 reform
of the Belgian UB system led to an increase in flows towards employment or inactivity
either in the aggregate or when comparing groups of workers whose benefits were affected
to different extents. While the results of this paper and recent literature provide
little ground in favour of a further accentuation of the steepness of the time profile
of UB in Belgium, the system could likely benefit from a simplification of the rules
that would enhance its readability for workers and facilitate its administration and
evaluation.
Published on June 28, 2022
In series:OECD Social, Employment and Migration Working Papersview more titles