• Last updated: Wed, Nov 8, 2023Status: Ongoing
  • Jan Sauermann, Olle Törnquist, and Sebastian Butschek

Did more generous unemployment insurance benefits contribute to worker reallocation during the COVID-19 pandemic?

This project explores how changes to Sweden’s unemployment insurance (UI) system during the COVID-19 pandemic influenced job search outcomes and labor market mobility. In response to rising unemployment, the Swedish government temporarily expanded UI access and generosity – reducing the membership requirement and increasing benefit levels. Using nationwide register data, we study whether unemployed individuals shifted toward more stable sectors and how the UI reforms affected job-finding rates, job quality, and firm characteristics. The project applies causal methods – including regression discontinuity and regression kink designs – to assess the impact of policy changes on employment trajectories during a time of economic disruption.

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