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The Impact of Unemployment Insurance Benefit Levels on Recipiency

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  • McCall, Brian P

Abstract

This paper studies the effect of unemployment insurance benefit levels on recipiency. Increasing benefit levels (as measured by the fraction of weekly earnings of the lost job that they replace) is found to significantly increase the probability of unemployment insurance recipiency among the eligible. There is some evidence, however, that the effect is smaller at high replacement rates. Cost increases resulting from take-up responses are found to be substantial for increases in the state's maximum benefit amount and for increases in the weekly benefit amount in low-replacement-rate states.

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Bibliographic Info

Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 13 (1995)
Issue (Month): 2 (April)
Pages: 189-98

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Handle: RePEc:bes:jnlbes:v:13:y:1995:i:2:p:189-98

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Cited by:
  1. James J. Heckman & Jeffrey Smith, 2003. "The Determinants of Participation in a Social Program: Evidence from a Prototypical Job Training Program," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20034, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  2. Card, David & Levine, Phillip B., 2000. "Extended benefits and the duration of UI spells: evidence from the New Jersey extended benefit program," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 107-138, October.
  3. Patricia M. Anderson & Bruce D. Meyer, 1994. "The Effects of Unemployment Insurance Taxes and Benefits on Layoffs Using Firm and Individual Data," NBER Working Papers 4960, National Bureau of Economic Research, Inc.
  4. Bruce D. Meyer & Wallace K. C. Mok, 2007. "Quasi-Experimental Evidence on the Effects of Unemployment Insurance from New York State," NBER Working Papers 12865, National Bureau of Economic Research, Inc.
  5. Donald O. Parsons & Torben Tranaes & Helene Bie Lilleør, 2003. "Voluntary Public Unemployment Insurance," CESifo Working Paper Series 1010, CESifo Group Munich.
  6. Avraham Ebenstein & Kevin Stange, 2010. "Does inconvenience explain low take-up? Evidence from unemployment insurance," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(1), pages 111-136.
  7. Carl Davidson & Stephen A. Woodbury, 1997. "The Optimal Dole with Risk Aversion, Job Destruction, and Worker Heterogeneity," Upjohn Working Papers and Journal Articles 97-47, W.E. Upjohn Institute for Employment Research.
  8. Isabel Poblete, 2011. "Análisis del uso de beneficios en el Seguro de Cesantía Chileno," Working Papers 51, Superintendencia de Pensiones, revised Oct 2011.
  9. John W. Budd, 2010. "Does Employee Ignorance Undermine Shared Capitalism?," NBER Chapters, in: Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-based Stock Options, pages 291-316 National Bureau of Economic Research, Inc.
  10. Patricia M. Anderson & Bruce D. Meyer, 1994. "Unemployment Insurance Benefits and Takeup Rates," NBER Working Papers 4787, National Bureau of Economic Research, Inc.
  11. Jonathan Gruber & Julie Berry Cullen, 1996. "Spousal Labor Supply as Insurance: Does Unemployment Insurance Crowd Outthe Added Worker Effect?," NBER Working Papers 5608, National Bureau of Economic Research, Inc.
  12. Kroft, Kory, 2008. "Takeup, social multipliers and optimal social insurance," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 722-737, April.
  13. Eduardo Fajnzylber R. & Isabel Poblete H., 2013. "Analysis of the use of benefits under Chilean unemployment insurance," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 16(3), pages 32-68, December.
  14. Riphahn, Regina T., 2000. "Rational Poverty or Poor Rationality? The Take-up of Social Assistance Benefits," IZA Discussion Papers 124, Institute for the Study of Labor (IZA).
  15. Cynthia K. Gustafson & Phillip B. Levine, 1998. "Less-Skilled Workers, Welfare Reform, and the Unemployment Insurance System," NBER Working Papers 6489, National Bureau of Economic Research, Inc.
  16. Peter Ganong & Jeffrey B. Liebman, 2013. "The Decline, Rebound, and Further Rise in SNAP Enrollment: Disentangling Business Cycle Fluctuations and Policy Changes," NBER Working Papers 19363, National Bureau of Economic Research, Inc.

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