Individual and Market-Level Effects of UI Policies: Evidence from Missouri

Fatih Karahan, Kurt Mitman and Brendan Moore ()
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Brendan Moore: Federal Reserve Bank of New York

No 12805, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We develop a method to jointly measure the response of worker search effort (individual effect) and vacancy creation (market-level effect) to changes in the duration of unemployment insurance (UI) benefits. To implement this approach, we exploit an unexpected cut in UI durations in Missouri and provide quasi-experimental evidence on the effect of UI on the labor market. The data indicate that the cut in Missouri significantly increased job finding rates by both raising the search effort of unemployed workers and the availability of jobs. The latter accounts for at least a third and up to 100% of the total effect.

Keywords: unemployment; unemployment insurance; vacancies; search (search for similar items in EconPapers)
JEL-codes: E24 J63 J64 J65 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2019-11
New Economics Papers: this item is included in nep-ias, nep-lab, nep-mac and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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