Assessing the Welfare Effects of Unemployment Benefits Using the Regression Kink Design

Camille Landais

American Economic Journal: Economic Policy, 2015, vol. 7, issue 4, 243-78

Abstract: I show how, in the tradition of the dynamic labor supply literature, one can identify the moral hazard effects and liquidity effects of unemployment insurance (UI) using variations along the time profile of unemployment benefits. I use this strategy to investigate the anatomy of labor supply responses to UI. I identify the effect of benefit level and potential duration in the regression kink design using kinks in the schedule of benefits in the US. My results suggest that the response of search effort to UI benefits is driven as much by liquidity effects as by moral hazard effects. (JEL D82, J22, J65)

JEL-codes: D82 J22 J65 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.1257/pol.20130248
References: Add references at CitEc
Citations: View citations in EconPapers (115)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/pol.20130248 (application/pdf)
http://www.aeaweb.org/aej/pol/app/0704/2013-0248_app.pdf (application/pdf)
http://www.aeaweb.org/aej/pol/data/0704/2013-0248_data.zip (application/zip)
http://www.aeaweb.org/aej/pol/ds/0704/2013-0248_ds.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Assessing the welfare effects of unemployment benefits using the regression kink design (2015)
Working Paper: Assessing the Welfare Effects of Unemployment Benefits Using the Regression Kink Design (2013)
Working Paper: Assessing the welfare effects of unemployment benefits using the regression kink design (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aejpol:v:7:y:2015:i:4:p:243-78

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Journal: Economic Policy is currently edited by Matthew Shapiro

More articles in American Economic Journal: Economic Policy from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().