The influence of different compensation levels of unemployment benefits onjob chances among unemployed youth: A comparative study of the Nordic countries

Comparative surveys of unemployed youth were carried out in 1995-96 in the five Nordic countries. Representative samples of 1,500 to 3,000 registered unemployed, aged 18 to 24 years old, were drawn from the national unemploym ent registers in each country in the spring of 1995, and respondents were i nterviewed 6 to 12 months later. The article examines the influence of rece iving unemployment benefits upon job chances of the previously unemployed. Danish youth (with compensation levels of 90 per cent) reported fewer finan cial problems than youth in the other countries with much lower compensatio n levels. The results document a decrease in the probability of re-employme nt for unemployed youth receiving unemployment benefits, even controlling f or age, educational level, work commitment, job-seeking and duration of une mployment. The effect was significantly stronger in Denmark than in the oth er countries with lower compensation levels. However, in the other countrie s, receiving social assistance and having financial problems had an equally negative impact on reemployment.