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Unemployment Insurance Rules, Joblessness, and Part-Time Work

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McCall, Brian P

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Abstract

In most states, unemployment insurance recipients accepting part-time work can earn up to a specific amount (the 'disregard') with no reduction in benefits. For earnings above the disregard, benefits are reduced dollar for dollar. This paper analyzes the effects of changes in the disregard on job search behavior. Using data from the Current Population Survey's Displaced Worker Supplements and a competing risks model with correlated risks and time-varying coefficients, an increase in the disregard is found to significantly increase the conditional probability of part-time reemployment during the first three months of joblessness. Copyright 1996 by The Econometric Society.

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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 64 (1996)
Issue (Month): 3 (May)
Pages: 647-82
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Handle: RePEc:ecm:emetrp:v:64:y:1996:i:3:p:647-82

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  1. Bruce Fallick & Keunkwan Ryu, 2003. "The recall and new job search of laid-off workers: a bivariate proportional hazard model with unobserved heterogeneity," Finance and Economics Discussion Series 2003-22, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  2. Stephen L. DesJardins & Dennis A. Ahlburg & Brian P. McCall, . "The Effects of Interrupted Enrollment on Graduation from College: Racial, Income, and Ability Differences," Working Papers 0505, Industrial Relations Center, University of Minnesota (Twin Cities Campus). [Downloadable!]
    Other versions:
  3. David M. Gray, 2006. "Recent Changes to the Employment Insurance Regime: Encouraging Work On-claim and Off-claim," Canadian Public Policy, University of Toronto Press, vol. 32(1), pages 99-110, March. [Downloadable!] (restricted)
  4. Portugal, Pedro & Addison, John T., 2003. "Six Ways to Leave Unemployment," IZA Discussion Papers 954, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Frank Gerhard & Nikolaus Hautsch, 2006. "A Dynamic Semiparametric Proportional Hazard Model," FRU Working Papers 2006/05, University of Copenhagen. Department of Economics. Finance Research Unit. [Downloadable!]
    Other versions:
  6. Rachel Connelly & Deborah DeGraff & Deborah Levison & Brian McCall, 2006. "Tackling the endogeneity of fertility in the study of women's employment in developing countries: Alternative estimation strategies using data from urban Brazil," Feminist Economics, Taylor and Francis Journals, vol. 12(4), pages 561-597, October. [Downloadable!] (restricted)
  7. Bart, COCKX & Stéphane, ROBIN & Christian, GOEBEL, 2006. "Income support policies for part-time workers : a stepping-stone to regular jobs ? An application to young long-terme unemployed women in Belgium," Université catholique de Louvain, Département des Sciences Economiques Working Paper 2006050, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
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  8. Stepan Jurajda & Frederick J. Tannery, 2001. "Unemployment Durations and Extended Unemployment Benefits in Local Labor Markets," Labor and Demography 0012006, EconWPA. [Downloadable!]
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  9. Jurajda, Stepán, 2001. "Estimating the Effect of Unemployment Insurance Compensation on the Labor Market Histories of Displaced Workers," IZA Discussion Papers 294, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  10. Giang Ho & Anthony Pennington-Cross, 2006. "Loan servicer heterogeneity and the termination of subprime mortgages," Working Papers 2006-024, Federal Reserve Bank of St. Louis. [Downloadable!]
  11. Dennis A. Ahlburg & Brian P. Mccall & In-gang Na, . "Time to Dropout From College: A Hazard Model with Endogenous Waiting," Working Papers 0102, Industrial Relations Center, University of Minnesota (Twin Cities Campus). [Downloadable!]
  12. Mark Yuying An, 2004. "Likelihood-Based Estimation of a Proportional-Hazard, Competing- Risk Model with Grouped Duration Data," Urban/Regional 0407013, EconWPA. [Downloadable!]
  13. Addison, John T. & Portugal, Pedro, 2004. "How Does the Unemployment Insurance System Shape the Time Profile of Jobless Duration?," IZA Discussion Papers 978, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  14. Teresa D. Harrison, 2007. "Consolidations and closures: an empirical analysis of exits from the hospital industry," Health Economics, John Wiley & Sons, Ltd., vol. 16(5), pages 457-474. [Downloadable!]
  15. Bidisha Chakrabarty & Zhaohui Han & Konstantin Tyurin & Xiaoyong Zheng, 2006. "A Competing Risk Analysis of Executions and Cancellations in a Limit Order Market," Caepr Working Papers 2006-015, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington. [Downloadable!]
  16. David Card & Phillip B. Levine, 1998. "Extended Benefits and the Duration of UI Spells: Evidence from the New Jersey Extended Benefit Program," NBER Working Papers 6714, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  17. N. Alibay & A. Lefranc, 2002. "Les effets du dispositif d'intéressement sur l'insertion au marché du travail des bénéficiaires de l'allocation chômage," THEMA Working Papers 2002-16, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
  18. Anthony Pennington-Cross & Giang Ho, 2006. "The termination of subprime hybrid and fixed rate mortgages," Working Papers 2006-042, Federal Reserve Bank of St. Louis. [Downloadable!]
  19. Hans H. Glismann & Klaus Schrader, 2001. "Alternative Systeme der Arbeitslosenversicherung — Das Beispiel der Vereinigten Staaten und des Vereinigten Königreichs," Kiel Working Papers 1032, Kiel Institute for the World Economy. [Downloadable!]
  20. Alan B. Krueger & Bruce D. Meyer, 2002. "Labor Supply Effects of Social Insurance," NBER Working Papers 9014, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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