Expectations of Unemployment Insurance and Unemployment Duration
AbstractOver the years there have been frequent changes in unemployment insurance benefits. Such changes could influence spells in progress as well as future spells. If individuals anticipate changes, they are likely to adjust their behavior. The effect of changes in benefits on unemployment duration, therefore, will be difficult to predict accurately without accounting for individual expectations. This article investigates the extent to which individuals anticipate changes in unemployment insurance entitlement. The results suggest that individuals have significant, although not perfect, foresight about changes in unemployment insurance provisions. Assuming perfect foresight might represent actual expectations more closely than assuming no foresight. Copyright 1998 by University of Chicago Press.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Labor Economics.
Volume (Year): 16 (1998)
Issue (Month): 3 (July)
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Web page: http://www.journals.uchicago.edu/JOLE/
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- Timothy Page, 2011. "Labor supply responses to government subsidized health insurance: evidence from kidney transplant patients," International Journal of Health Care Finance and Economics, Springer, vol. 11(2), pages 133-144, June.
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- Karen E. Needels & Walter Nicholson, 1999. "An Analysis of Unemployment Insurance Durations Since the 1990-1992 Recession," Mathematica Policy Research Reports 2823, Mathematica Policy Research.
- Geerdsen, Lars Pico & Holm, Anders, 2007. "Duration of UI periods and the perceived threat effect from labour market programmes," Labour Economics, Elsevier, vol. 14(3), pages 639-652, June.
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