2018
DOI: 10.2139/ssrn.3318365
|View full text |Cite
|
Sign up to set email alerts
|

Wages and the Value of Nonemployment

Abstract: Nonemployment is often posited as a worker's outside option in wage setting models such as bargaining and wage posting. The value of this state is therefore a fundamental determinant of wages and, in turn, labor supply and job creation. We measure the effect of changes in the value of nonemployment on wages in existing jobs and among job switchers. Our quasi-experimental variation in nonemployment values arises from four large reforms of unemployment insurance (UI) benefit levels in Austria. We document that w… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1

Citation Types

0
4
0

Year Published

2020
2020
2021
2021

Publication Types

Select...
2
1

Relationship

0
3

Authors

Journals

citations
Cited by 3 publications
(4 citation statements)
references
References 65 publications
(91 reference statements)
0
4
0
Order By: Relevance
“…It is supported by the prominent theories of unemployment, i.e. efficiency wage model and insider-outsider models (Jager, Schoefer, Young, & Zweimüller, 2020).…”
Section: Fig 4 Wage Indexation With Inflation Fig 5 Wage Indexation Wmentioning
confidence: 82%
“…It is supported by the prominent theories of unemployment, i.e. efficiency wage model and insider-outsider models (Jager, Schoefer, Young, & Zweimüller, 2020).…”
Section: Fig 4 Wage Indexation With Inflation Fig 5 Wage Indexation Wmentioning
confidence: 82%
“…In principle, the increase in employment and labor force could also be due to migration, as workers from other counties may move to counties that grow faster due to the local stimulus. 21 However, column (iii) shows that this effect is small and less statistically significant: labor force growth in one county does not appear to come at the expense of labor force growth in other counties.…”
Section: Other Outcomesmentioning
confidence: 93%
“…In addition to the literature on local fiscal multipliers, the paper also contributes directly to a growing literature on the labor market implications of UI benefit generosity. While some recent microeconomic studies find no effect of benefit generosity on unemployed workers' willingness to accept a job (Krueger and Mueller, 2016;Jaeger et al, 2020), others provide evidence that extending the UI benefit duration leads to reduced job search effort (Card, Chetty, Marinescu, 2017), though the effect declines in recessions (Schmieder et al, 2012;Kroft and Notowidigdo, 2016). At the macro level, the literature has focused on whether changes in individual search behavior in response to more generous UI policies translate into higher unemployment rates.…”
Section: Introductionmentioning
confidence: 99%
“…For example, exploit changes in UI benefit levels in Austria in the 1980s and 1990s and find that wages are relatively unresponsive to UI generosity. This insensitivity holds even among low-wage earners, frequent job switchers, and those with high predicted unemployment duration (Jäger, Schoefer, Young, and Zweimüller, 2019). characteristics but vary by UI duration eligiblity, these data allow us to improve on existing work and get a better sense of how UI duration affects an individual's physical and mental health.…”
Section: Introductionmentioning
confidence: 92%