confirms the obvious-if you subsidize unemployment more then you will have more unemployment. The authors evaluate recent Finnish experience after they in 2003 raised short-term unemployment benefits for the first 150 days of unemployment. The result was that the duration of unemployment for those receiving the higher benefits rose significantly even as it actually fell for those not eligible for the increased benefits. The authors estimate that the 15% increase caused a 31 day increase in umeployment duration.
Not exactly shocking results, but when Social Democrats try to deny the obvious truth
such studies can be valuable.