Reprint of: The general equilibrium impacts of unemployment insurance: Evidence from a large online job board

Ioana Marinescu

Journal of Public Economics, 2019, vol. 171, issue C, 70-85

Abstract: During the Great Recession, U.S. unemployment benefits were extended by up to 73weeks. Theory predicts that extensions increase unemployment by discouraging job search, a partial equilibrium effect. Using data from the large job board CareerBuilder.com, I find that a 10% increase in benefit duration decreased state-level job applications by 1%, but had no robust effect on job vacancies. Job seekers thus faced reduced competition for jobs, a general equilibrium effect. Calibration implies that the general equilibrium effect reduces the impact of unemployment insurance on unemployment by 39%.

Keywords: Unemployment insurance; Job search; Applications; Vacancies (search for similar items in EconPapers)
JEL-codes: J6 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S004727271930026X
Full text for ScienceDirect subscribers only

Related works:
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:eee:pubeco:v:171:y:2019:i:c:p:70-85

DOI: 10.1016/j.jpubeco.2019.03.004

Access Statistics for this article

Journal of Public Economics is currently edited by R. Boadway and J. Poterba

More articles in Journal of Public Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().