The General Equilibrium Impacts of Unemployment Insurance: Evidence from a Large Online Job Board

Ioana Marinescu

Working Papers from eSocialSciences

Abstract: During the Great Recession, U.S. unemployment benefits were extended by up to 73 weeks. Theory predicts that extensions increase unemployment by discouraging job search, a partial equilibrium effect. Using data from the large job board CareerBuilder.com, this paper finds 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 40%: increasing benefit duration by 10% increases unemployment by only 0.6% in equilibrium. [Working Paper 22447]

Keywords: Great Recession; unemployment benefits; partial equilibrium effect; CareerBuilder.com; General Equilibrium Impacts; Unemployment Insurance (search for similar items in EconPapers)
Date: 2016-07
Note: Institutional Papers
References: Add references at CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: The general equilibrium impacts of unemployment insurance: Evidence from a large online job board (2017)
Chapter: The General Equilibrium Impacts of Unemployment Insurance: Evidence from a Large Online Job Board (2016)
Working Paper: The General Equilibrium Impacts of Unemployment Insurance: Evidence from a Large Online Job Board (2016)
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