Data and Code for: Removing Welfare Traps

Principal Investigator(s):  View help for Principal Investigator(s) Jouko Verho, VATT Institute for Economic Research; Kari Hämäläinen, VATT Institute for Economic Research; Ohto Kanninen, Labour Institute for Economic Research

Version:  View help for Version V1

Name File Type Size Last Modified
Google_index BI.csv text/csv 3.5 KB 03/10/2021 05:29:AM
Google_index Disability_pension.csv text/csv 3.6 KB 03/10/2021 05:29:AM
Rcode1 employment spells.R text/x-rsrc 10.6 KB 04/13/2021 04:07:AM
Rcode2 unemployment spells.R text/x-rsrc 4.9 KB 04/13/2021 02:33:AM
Rcode3 analysis data.R text/x-rsrc 17.2 KB 04/13/2021 02:34:AM
Rcode4 analysis results.R text/x-rsrc 44.5 KB 04/13/2021 02:34:AM
ReadMe.pdf application/pdf 109.2 KB 04/13/2021 04:05:AM
Stata code Table C1.do text/plain 3.7 KB 04/13/2021 04:07:AM
simulated_married.dta application/x-stata-dta 3.5 KB 04/13/2021 04:06:AM
simulated_marriedC.dta application/x-stata-dta 3.5 KB 04/12/2021 03:42:AM

Project Citation: 

Verho, Jouko, Hämäläinen, Kari, and Kanninen, Ohto. Data and Code for: Removing Welfare Traps. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-01-28. https://doi.org/10.3886/E134221V1

Project Description

Summary:  View help for Summary This paper provides evidence that replacing minimum unemployment benefits with a basic income of equal size has minor employment effects at best. We examine an experiment in Finland in which 2,000 benefit recipients were randomized to receive a monthly basic income. The experiment lowered participation tax rates by 23pp for full-time employment. Despite the considerable increase in work incentives, days in employment remained statistically unchanged in the first year of the experiment. Moreover, even though all job search requirements were waived, participation in reemployment services remained high.


Scope of Project

Subject Terms:  View help for Subject Terms Field experiment; Employment; Social insurance; Unemployment benefits
JEL Classification:  View help for JEL Classification
      C93 Field Experiments
      H55 Social Security and Public Pensions
      I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
      J65 Unemployment Insurance; Severance Pay; Plant Closings
Geographic Coverage:  View help for Geographic Coverage Finland
Time Period(s):  View help for Time Period(s) 2015 – 2018
Collection Date(s):  View help for Collection Date(s) 10/2018 – 1/2020
Universe:  View help for Universe The recipients of minimum unemployment benefits (paid by the Social Insurance Institution of Finland)
Data Type(s):  View help for Data Type(s) program source code

Methodology

Response Rate:  View help for Response Rate
100% (the study uses register data)
Sampling:  View help for Sampling
Simple random sampling by the Social Insurance Institution of Finland
Data Source:  View help for Data Source
Finnish administrative data from:
1. The Social Insurance Institution of Finland (SII)
2. Finnish Centre for Pensions
3. Public employment services (PES)
4. Tax administration


Unit(s) of Observation:  View help for Unit(s) of Observation Individuals

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Published Versions

V1 [2022-01-28]

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