EconPapers    
Economics at your fingertips  
 

Delayed Collection of Unemployment Insurance in Recessions

Zoe Xie

No 2019-14, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta

Abstract: Using variations in unemployment insurance policies over time and across U.S. states, this paper provides evidence that allowing unemployed workers to delay the collection of benefits increases their job-finding rate. In a model with discrete job take-up decisions, benefit entitlement, wage-indexed benefits, and heterogeneous job types, I demonstrate that the policy can increase an unemployed worker's willingness to work, even though more benefits in general reduce the relative value of employment. In a calibrated quantitative model, I find that allowing delayed benefit collection increases the overall job finding rates and may lower the unemployment rate both in a steady state stationary economy and over a transition path during 2008–12.

Keywords: health; frailty index; life cycle profiles (search for similar items in EconPapers)
JEL-codes: E24 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-ias, nep-lab and nep-mac
Date: 2019-06-01
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.frbatlanta.org/-/media/documents/resea ... ce-in-recessions.pdf Full text (application/pdf)

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:fip:fedawp:2019-14

Ordering information: This working paper can be ordered from

DOI: 10.29338/wp2019-14

Access Statistics for this paper

More papers in FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta Contact information at EDIRC.
Bibliographic data for series maintained by Elaine Clokey ().

 
Page updated 2019-10-18
Handle: RePEc:fip:fedawp:2019-14