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Revisiting the Effects of Unemployment Insurance Extensions on Unemployment: A Measurement Error-Corrected Regression Discontinuity Approach

Steven Dieterle, Otavio Bartalotti and Quentin Brummet ()

No 11496, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We document two potential biases in recent analyses of UI benefit extensions using boundary-based identification: from using county-level aggregates and from across-border policy spillovers. To examine the first bias, we use a regression discontinuity (RD) approach that accounts for measurement error in county-level aggregates. Our results suggest much smaller effects than previous studies, casting doubt on the applicability of border-based designs. We then document substantial spillover effects of UI benefit duration in the form of across-border work patterns that are consistent with increased tightness in high benefit states, providing evidence against a dominant vacancy reduction response to UI extensions.

Keywords: unemployment insurance; great recession; geographic regression discontinuity; policy spillover (search for similar items in EconPapers)
JEL-codes: J61 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ias and nep-lab
Date: 2018-04
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Related works:
Working Paper: Revisiting the Effects of Unemployment Insurance Extensions on Unemployment: A MeasurementError-Corrected Regression Discontinuity Approach (2018) Downloads
Working Paper: Revisiting the Effects of Unemployment Insurance Extensions on Unemployment: A Measurement Error-Corrected Regression Discontinuity Approach (2016) Downloads
Working Paper: Revisiting the Effects of Unemployment Insurance Extensions on Unemployment: A Measurement Error-Corrected Regression Discontinuity Approach (2016) Downloads
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