Unemployment Insurance Rules, Joblessness, and Part-Time Work

Brian McCall

Econometrica, 1996, vol. 64, issue 3, 647-82

Abstract: In most states, unemployment insurance recipients accepting part-time work can earn up to a specific amount (the 'disregard') with no reduction in benefits. For earnings above the disregard, benefits are reduced dollar for dollar. This paper analyzes the effects of changes in the disregard on job search behavior. Using data from the Current Population Survey's Displaced Worker Supplements and a competing risks model with correlated risks and time-varying coefficients, an increase in the disregard is found to significantly increase the conditional probability of part-time reemployment during the first three months of joblessness. Copyright 1996 by The Econometric Society.

Date: 1996
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Working Paper: Unemployment Insurance Rules, Joblessness, and Part-Time Work (1993)
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