Extended unemployment benefits for older workers increase employment by 7 months.
The study looked at how giving older unemployed people in Finland extended benefits until retirement affected their long-term outcomes. By changing the age at which people could start receiving these benefits, researchers found that delaying eligibility by two years led to an increase in employment by seven months over the rest of their working life. This change did not have a significant impact on mortality rates, disability benefits, or the work of the person's spouse. Overall, the reform resulted in an average individual receiving 15,000 Euros more in net income transfers over a 10-year period.