[Longer Unemployment Insurance Benefits in Times of Crisis? Covid-19 and the Appropriate Maximum Benefit Duration].

Abstract

This article deals with the question of which unemployment benefit durations are considered fair for which groups. In addition, it examines the extent to which individuals consider longer unemployment insurance benefit durations to be appropriate in times of economic crisis, such as the current situation during the Covid-19 pandemic. Longer reference periods can stabilize the income situation of benefit recipients and can provide time to search for an adequate job and thus increase matching quality. However, they also initially reduce the pressure to look for a job, and they lengthen the period of unemployment in the longer term. Using survey data from two online surveys done in November 2019 and during the crisis in May 2020, we examine which unemployment benefit durations employees consider appropriate. For this purpose, we presented vignettes to the survey participants describing hypothetical unemployed people whose characteristics varied randomly. The results show that the same respondents considered similar reference periods to be appropriate at both dates. In addition, the respondents took into account criteria of contribution as well as neediness when assessing the appropriate duration of benefits for the unemployed. Characteristics such as the age of the unemployed and any existing culpability, life benefits, or contribution periods influenced the duration of the benefit receipt that respondents judged to be appropriate.