Effects of the unemployment insurance work test on long-term employment outcomes
Marta Lachowska,
Merve Meral and
Stephen Woodbury
Labour Economics, 2016, vol. 41, issue C, 246-265
Abstract:
Does requiring job seekers to be available and searching for work affect job quality? We examine the effects of this unemployment insurance (UI) work test on long-term employment outcomes. Adding administrative wage records to the Washington Alternative Work Search (WAWS) experiment, we examine effects on earnings, hours worked, employment, and job match quality in the nine years following the experiment. Among UI recipients as a whole, the effects of the work test were negligible, counter to the hypothesis that the work test may harm long-term earnings. But for permanent job losers, the work test reduced time to reemployment by 1–2 quarters, and increased job tenure with the first post-claim employer by about 2 quarters. Also, we find that the work test selected lower-wage workers into reemployment. Accordingly, the work test may be an important policy for improving the reemployment prospects of lower-wage, permanent job losers.
Keywords: Unemployment insurance; Work test; Random-assignment experiment; Pre-treatment outcome tests; Reemployment policy; Long-term evaluation of public policy; Administrative data (search for similar items in EconPapers)
JEL-codes: C21 C93 I38 J18 J38 J64 J65 J68 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:41:y:2016:i:c:p:246-265
DOI: 10.1016/j.labeco.2016.05.015
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