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Research ArticleArticles

Job-Search Requirements for Unemployed at the End of Working Life: Effects on Unemployment Dynamics and Self-Employment Probabilities

Jim Been and Marike Knoef
Published online before print March 08, 2016, DOI: https://doi.org/10.3368/jhr.52.2.0415-7063R1
Jim Been
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Marike Knoef
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Abstract

This paper investigates the extent to which job-search requirements in unemployment insurance (UI) 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 UI for persons aged 57.5+. 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 UI, but not relative to paid-employment.

  • Retirement routes
  • Self-employment
  • Unemployment insurance
  • Job-search requirements
JEL codes
  • C23
  • J14
  • J26
  • J64
  • J68
  • Received December 2015.

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Journal of Human Resources: 60 (3)
Journal of Human Resources
Vol. 60, Issue 3
1 May 2025
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Job-Search Requirements for Unemployed at the End of Working Life: Effects on Unemployment Dynamics and Self-Employment Probabilities
Jim Been, Marike Knoef
Journal of Human Resources Mar 2016, DOI: 10.3368/jhr.52.2.0415-7063R1

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Job-Search Requirements for Unemployed at the End of Working Life: Effects on Unemployment Dynamics and Self-Employment Probabilities
Jim Been, Marike Knoef
Journal of Human Resources Mar 2016, DOI: 10.3368/jhr.52.2.0415-7063R1
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Keywords

  • Retirement routes
  • Self-employment
  • Unemployment Insurance
  • Job-search requirements
  • C23
  • J14
  • J26
  • J64
  • J68
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