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Effects of unemployment insurance work-search requirements: The Maryland experiment

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Author Info
Daniel H. Klepinger
Terry R. Johnson
Jutta M. Joesch
Abstract

This paper describes findings from a 1994 experimental evaluation of alternative work-search requirements in the Unemployment Insurance (UI) program. Requiring additional employer contacts or verification of contacts reduced UI receipt by one week and $115 per claimant. Because these additional requirements did not entail additional re-employment services, the UI spell reduction can be attributed to increased non-monetary costs for remaining on UI. A job-search workshop requirement reduced UI receipt by half a week and $75 per claimant, and additional results indicate that the effects were due to increased costs of continued UI receipt rather than to enhanced job-search productivity. These treatments did not affect employment or earnings, implying that reduced UI duration led to more intensive job search, rather than a reduction in the reservation wage. In contrast, elimination of the employer contact requirement increased UI receipt and post-UI earnings, suggesting that delayed exit from UI improved job matches. (Author's abstract.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 56 (2002)
Issue (Month): 1 (October)
Pages: 3-22
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Handle: RePEc:ilr:articl:v:56:y:2002:i:1:p:3-22

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  1. Graversen, B.K. & Ours, J.C. van, 2009. "How a Mandatory Activation Program Reduces Unemployment Durations: The Effects of Distance," Discussion Paper 2009-18, Tilburg University, Center for Economic Research. [Downloadable!]
  2. Bruno Crépon & Muriel Dejemeppe & Marc Gurgand, 2005. "Counseling the Unemployed: Does It Lower Unemployment Duration and Recurrence?," IZA Discussion Papers 1796, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Krogh Graversen, Brian & van Ours, Jan C., 2009. "How a Mandatory Activation Program Reduces Unemployment Durations; the Effects of Distance," CEPR Discussion Papers 7233, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Ott Toomet, 2008. "Threat Effect Of The Labour Market Programs In Denmark: Evidence From A Quasi-Experiment," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 62, Faculty of Economics and Business Administration, University of Tartu (Estonia). [Downloadable!]
  5. Jeff Borland & Yi-Ping Tseng, 2003. "How Do Administrative Arrangements Affect Exit from Unemployment Payments? The Case of the Job Seeker Diary in Australia," Melbourne Institute Working Paper Series wp2003n27, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  6. Graversen, Brian Krogh & van Ours, Jan C., 2009. "How a Mandatory Activation Program Reduces Unemployment Durations: The Effects of Distance," IZA Discussion Papers 4079, Institute for the Study of Labor (IZA). [Downloadable!]
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