Effects of extended unemployment insurance benefits: evidence from the monthly CPS
No 10-35, Working Papers from Federal Reserve Bank of Philadelphia
This paper attempts to quantify the effects of extended unemployment insurance benefits in recent years. Using the monthly Current Population Survey, I estimate unemployment-to-employment (UE) hazard function and unemployment-to-inactivity (UN) hazard function for male workers. The estimated hazard functions for the period of 2004-2007, during which no extended benefits were available, exhibit patterns consistent with the expiration of regular benefits at 26 weeks. These patterns largely disappear from the hazard functions for the period of 2009-2010, during which largescale extended benefits had become available. I conduct counterfactual experiments in which the estimated hazard functions for 2009-2010 are replaced by the counterfactual hazard functions whose patterns are inferred from those for the 2004-2007 period. The experiments suggest that extended benefits in recent years have raised male workers? unemployment rate by 1.2 percentage points with a 90% confidence interval of 0.8 to 1.8 percentage points. The increases in the unemployment rate largely come from the effects on the UE hazard function rather than the UN hazard function.
Keywords: Unemployment insurance; Unemployment (search for similar items in EconPapers)
Date: 2011, Revised 2011
New Economics Papers: this item is included in nep-ias
References: View complete reference list from CitEc
Citations: View citations in EconPapers (20) Track citations by RSS feed
Downloads: (external link)
http://www.philadelphiafed.org/research-and-data/p ... rs/2010/wp10-35R.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedpwp:10-35
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Federal Reserve Bank of Philadelphia Contact information at EDIRC.
Bibliographic data for series maintained by Beth Paul ().