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How do unemployment benefits relate to job search behavior?

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Abstract

We examine the relationship between unemployment insurance and job search using data from 2013 through 2019. Our research shows that the unemployed exert a high level of effort to find work. This is especially true for those receiving unemployment insurance benefits. Those who have exhausted their unemployment benefits search less intensely for work, but are also willing to accept work that pays considerably less than their prior job.

Suggested Citation

  • R. Jason Faberman & Ali Haider Ismail, 2020. "How do unemployment benefits relate to job search behavior?," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue 441, pages 1-6, June.
    • Handle: RePEc:fip:fedhle:92796
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    More about this item

    Keywords

    unemployment insurance benefits; job search; search effort; search intensity;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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