The effect of reduced unemployment duration on the unemployment rate: a Synthetic Control Approach
Informazioni aggiuntive
Autori
Stricker L.,
Baruffini M.
Tipo
Articolo pubblicato in rivista scientifica
Anno
2020
Lingua
Inglese
Sommario
This paper examines the impact of the fourth partial revision of the law of unemployment insurance (AVIG) on
unemployment dynamics in Switzerland at a cantonal level. The authors apply the Synthetic Control Method (SCM), a
matching method for comparative case studies. A counterfactual analysis of the cases studied is performed by
combining a control group of several untreated units, which provides a better comparison to the treatment group than a
single unit. The control unit is designed as a weighted average of the available cantons in the donor pool, taking into
account the similarities between the chosen controls and the treated unit. Once policy changes are controlled, the
results suggest a significant effect on the unemployment rate at a cantonal level: the reform had a discernible impact on
lowering the unemployment rate in the Italian- and French-speaking cantons in Switzerland.
Parole chiave
labour market reforms, Synthetic Control Method, treatment effects, unemployment
Periodico
European Journal of Government and Economics
Volume
9
Numero ( Mese )
1-2020 ( June )
Pagine (o numero dell’articolo)
46-73
ISSN
2254-7088
