Measuring the equilibrium effects of unemployment benefits dispersion

Aico Van Vuuren*, Gerard J. Van Den Berg, Geert Ridder

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review

9 Citations (Scopus)


We analyse the impact of unemployment benefits and minimum wages using an equilibrium search model which allows for dispersion of benefits and productivity levels, job-to-job transitions, and structural and frictional unemployment. The estimation method uses readily available aggregate data on marginal distributions of unemployment durations as well as wages and benefit levels. Different causes of structural and frictional unemployment are investigated. We investigate the efficiency of the imposition of a single benefit level for all household types and the introduction of a tax credit on earned income.

Original languageEnglish
Pages (from-to)547-574
Number of pages28
JournalJournal of Applied Econometrics
Issue number6
Publication statusPublished - 2000


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