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Unemployment benefits and duration of registered unemployment in Russia: Regression kink design

Author

Listed:
  • Kopytok, V.

    (National Research University "Higher School of Economics", Moscow, Russia
    Center for Advanced Governance, Moscow, Russia)

Abstract

The unemployment insurance (UI) system is one of the key labor market institutes. UI benefits allow to smooth consumption during unemployment. Moreover, people receiving UI benefits can search for a new position more selectively, and thus find a job that with more appropriate qualification requirements and salary. Nevertheless, generous UI benefits lead to a decrease in the intensity of job search and an increase in the duration of registered unemployment. The optimal UI system design balances these effects. This paper is based on administrative microdata on registered unemployment in Russia in 2019 (collected by The Federal Service for Labor and Employment of Russia) to estimate the causal effect of UI benefits on the duration of registered unemployment. Regression kink design and the maximum UI benefits levels are exploited to identify the causal effect. Estimated elasticities of UI duration with respect to average daily benefits are positive and significant with values from 0.2 to 5.3 due to specification which corresponds to the estimates obtained for other countries.

Suggested Citation

  • Kopytok, V., 2022. "Unemployment benefits and duration of registered unemployment in Russia: Regression kink design," Journal of the New Economic Association, New Economic Association, vol. 54(2), pages 156-175.
    • Handle: RePEc:nea:journl:y:2022:i:54:p:156-175
    DOI: 10.31737/2221-2264-2022-54-2-8
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    regression kink design; causality; causal inference; registered unemployment; unemployment insurance system;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • 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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