The Effect of Unemployment Benefit Pay Frequency on UI Claimants' Job Search Behaviors

Guangli Zhang (guangli.zhang@slu.edu)
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Guangli Zhang: Sinquefield Center for Applied Economic Research, Saint Louis University, Postal: 3700 West Pine Mall Blvd., Fusz Hall 358, St. Louis, MO 63103, https://www.slu.edu/research/sinquefield-center-for-applied-economic-research/index.php

No 21-3, Working Papers from Sinquefield Center for Applied Economic Research, Saint Louis University

Abstract: This paper presents new evidence on how UI (Unemployment Insurance) benefit pay frequencies affect the job search behaviors of UI claimants in the United States. By exploiting quasi-experimental variations in states' benefit pay schedules, I find that switching from biweekly to weekly pay significantly increases UI claimants' unemployment durations. This observed effect can be partly rationalized by the more frequent end-of-the-month positive benefit shocks under weekly pay schedules. I conclude that the previously overlooked policy parameter, benefit pay frequency, has important effects on the job search behaviors of UI claimants.

Keywords: unemployment insurance; natural experiment; benefit pay frequency (search for similar items in EconPapers)
JEL-codes: H55 J65 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2021-10-20
New Economics Papers: this item is included in nep-ias, nep-lab and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:ris:sluecr:2021_003

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