Difference of Uneployment Insurance Duration and Unemployment Duration

Abstract

The paper analyzes the effects of unemployment insurance(UI) duration on the unemployment duration using registered data of the unemployed men in Qingdao.We apply survival analysis to our duration research and construct a Cox proportional hazard model based on the dynamic search theory.The results suggest that the unemployment insurance has a potential disincentive effects on the hazard into employment,which can be found from comparing UI-receiver with non-receiver.We also find that different levels of UI duration have different effets on the hazard to employment and unemployment durations.In general,unemployment duration changes in common with UI duration in the condition of same UI benefit.