The Relative Effects of Unemployment Insurance Parameters on Transitional Labor Supply Decisions

Julie Hotchkiss and Robert Moore

Eastern Economic Journal, 1994, vol. 20, issue 1, 21-32

Abstract: The paper examines the role unemployment insurance (UI) parameters play in transitional labor supply decisions of individuals searching for a job. This paper compares the impact of UI parameters to the impact of other demographic variables. It also compares the relative strength of the parameters to one another. A sequential ordered response model is specified to focus on the transitional employment decisions of searchers who are receiving UI. The results suggest that the tax rate is a viable policy tool for influencing labor supply during the job search process, and states may even experience a net savings through its decrease.

Keywords: Employment; Labor Supply; Unemployment Insurance; Unemployment (search for similar items in EconPapers)
JEL-codes: J22 J65 (search for similar items in EconPapers)
Date: 1994
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:20:y:1994:i:1:p:21-32

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