Unemployment benefits expiration leads to sharp rise in job search urgency.
The study looked at how unemployment benefits affect the chances of finding a job in Spain. By using a new model that separates different types of benefits, the researchers found that when regular benefits are about to end, the likelihood of finding a job increases sharply. However, for those receiving extended benefits, the chances of finding a job stay the same or even decrease slightly as the benefits near their end. Some people even switch from regular benefits to extended benefits because they would lose money otherwise.