Second, many studies have shown that the exit rate from unemployment exhibits a spike around the time benefits expire. The spike at benefit exhaustion, in principle, suggests that recipients tend to wait until their benefits run out before returning to work. However, there are a number of reasons to suggest that the evidence on the labour-supply disincentives of UI needs to be qualified, particularly in the context of emerging economies. Based on a survey of the literature and new estimates for Austria, they conclude that the vast majority of job seekers does not wait until their UI benefits are exhausted to return to work. Moreover, moral-hazard effects due to UI receipt are likely to take a somewhat different form in emerging economies, since UI not only increases the value of not working but also that of working in the informal sector. In the context of widespread labour informality and weak enforcement capacity, it is difficult to ensure that individuals do not take up a job in the informal sector whilst receiving UBs.