Effects of Unemployment Insurance Entitlement on Duration and Job Search Outcome

Holen, Arlene

doi:10.1177/001979397703000401

Cited by 47 publications

(16 citation statements)

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“…wages for older men, with lower or non significant effects for other demographic groups. Burgess and Kingston (1976) and Holen (1977) follow a similar approach on Service to Claimants data, and estimate that an extra dollar in weekly benefits raises post-unemployment annual earnings by 25 and 36 dollars, respectively. In contrast, Classen (1977) finds no significant effect of UI on earnings using data on claimants from the Continuous Wage and Benefit History.…”

Section: Related Workmentioning

confidence: 99%

The long-term effects of job search requirements: Evidence from the UK JSA reform

Petrongolo

2009

Journal of Public Economics

100

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S ABSTRACTThe Long-Term Effects of Job Search Requirements: Evidence from the UK JSA Reform * This paper investigates long-term returns from unemployment compensation, exploiting variation from the UK JSA reform of 1996, which implied a major increase in job search requirements for eligibility and in the related administrative hurdle. Search theory predicts that such changes should raise the proportion of non-claimant nonemployed, with consequences on search effort and labor market attachment, and lower the reservation wage of the unemployed, with negative effects on post-unemployment wages. I test these ideas on longitudinal data from Social Security records (LLMDB). Using a difference in differences approach, I find that individuals who start an unemployment spell soon after JSA introduction, as opposed to six months earlier, are 2.5-3% more likely to move from unemployment into Incapacity Benefits spells, and 4-5% less likely to have positive earnings in the following year. This latter employment effect only vanishes four years after the initial unemployment shock. Also, annual earnings for the treated individuals are lower than for the non-treated. These results suggest that while tighter search requirements were successful in moving individuals off unemployment benefits, they were not successful in moving them onto longlasting or better jobs, with fairly long lasting unintended consequences on a number of labor market outcomes.JEL Classification: J31, J64, J65

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Section: Related Workmentioning

confidence: 99%

The long-term effects of job search requirements: Evidence from the UK JSA reform

Petrongolo

2009

Journal of Public Economics

100

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“…Some studies demonstrate that lower and shorter UI benefits lead to lower and deteriorated re-employment wages due to a lack of time and economic resources (Burgess and Kingston, 1976;Ehrenberg and Oaxaca, 1976;Holen, 1977;Addison and Blackburn, 2000;Gangl, 2004Gangl, , 2006Shen, 2006;Petrongolo, 2007). Still other studies have found no significant results for any relationship between cut-offs in the UI benefits and re-employment wages (Classen, 1977;Blau and Robins, 1986;Kiefer and Neumann, 1989;Meyer, 1995;van Ours and Vodopivec, 2008).…”

Section: Introductionmentioning

confidence: 99%

Retrenchments in Unemployment Insurance Benefits and Wage Inequality: Longitudinal Evidence from the Netherlands, 1985-2000

Mooi‐Reci¹

2011

European Sociological Review

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This study includes retrenchments in unemployment insurance (UI) benefits as an understudied mechanism to investigate possible explanations for wage inequality in the labor market. Using longitudinal data from the Dutch Labor Supply Panel (OSA) over the period 1985-2000, and adopting a quasi-experimental design, we not only extend current research by asking if restrictive changes in UI benefits affect re-employment wages, but also explore variation by the level, and eligibility conditions of UI benefits across gender and over time. Results from a series of fixed-effects models show that lower and shorter UI benefits lead to persisting wage inequalities over time. When investigating whether wage penalties vary across gender, we find that women experience the largest penalties. These findings provide evidence that these particular types of restrictions in UI benefits have likely increased rather than decreased wage inequalities between men and women.

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“…Ehrenberg and Oaxaca (1976), Burgess and Kingston (1976), Hoelen (1977), and Barron and Mellow (1979) find a statistically significant and positive relationship between benefit levels and post-unemployment wages.…”

mentioning

confidence: 96%

Does reducing unemployment insurance generosity reduce job match quality?

Ours

Vodopivec

2008

Journal of Public Economics

141

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Effects of Unemployment Insurance Entitlement on Duration and Job Search Outcome

Cited by 47 publications

References 0 publications

The long-term effects of job search requirements: Evidence from the UK JSA reform

The long-term effects of job search requirements: Evidence from the UK JSA reform

Retrenchments in Unemployment Insurance Benefits and Wage Inequality: Longitudinal Evidence from the Netherlands, 1985-2000

Does reducing unemployment insurance generosity reduce job match quality?

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