The Effect of Extended Unemployment Insurance Benefits: Evidence from the 2012-2013 Phase-Out

Henry S Farber (), Jesse Rothstein and Robert Valletta
Additional contact information
Henry S Farber: Princeton University

No 8784, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Unemployment Insurance benefit durations were extended during the Great Recession, reaching 99 weeks for most recipients. The extensions were rolled back and eventually terminated by the end of 2013. Using matched CPS data from 2008-2014, we estimate the effect of extended benefits on unemployment exits separately during the earlier period of benefit expansion and the later period of rollback. In both periods, we find little or no effect on job-finding but a reduction in labor force exits due to benefit availability. We estimate that the rollbacks reduced the labor force participation rate by about 0.1 percentage point in early 2014.

Keywords: extended unemployment benefits; job search; labor force (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2015-01
New Economics Papers: this item is included in nep-his, nep-lab, nep-lma and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (53)

Published - published in: American Economic Review, 2015, 105 (5), 171 - 176

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Related works:
Journal Article: The Effect of Extended Unemployment Insurance Benefits: Evidence from the 2012-2013 Phase-Out (2015)
Working Paper: The Effect of Extended Unemployment Insurance Benefits: Evidence from the 2012-2013 Phase-Out (2015)
Working Paper: The Effect of Extended Unemployment Insurance Benefits: Evidence from the 2012-2013 Phase-Out (2015)
Working Paper: The Effect of Extended Unemployment Insurance Benefits: Evidence from the 2012-2013 Phase-Out (2015)
Working Paper: The Effect of Extended Unemployment Insurance Benefits: Evidence from the 2012-2013 Phase-Out (2015)
Working Paper: The effect of extended unemployment insurance benefits: evidence from the 2012-2013 phase-out (2015)
Working Paper: The Effect of Extended Unemployment Insurance Benefits: Evidence from the 2012-2013 Phase-Out (2015)
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