IDEAS home Printed from https://ideas.repec.org/a/uwp/jhriss/v29y1994iii1p718-741.html
   My bibliography  Save this article

The Impact of Reemployment Bonuses on Insured Unemployment in the New Jersey and Illinois Reemployment Bonus Experiments

Author

Listed:
  • Paul T. Decker

Abstract

Separate social experiments conducted in New Jersey and Illinois tested the effect of offering Unemployment Insurance (UI) claimants a cash bonus for rapid reemployment. The Illinois bonus was constant over time, while the New Jersey bonus declined over time, so that the bonus received was greater the earlier that reemployment occurred. This paper compares the effects of the bonus offers on the rate at which claimants exited UI. The New Jersey and Illinois bonus offers generated similar increases in the UI exit rate during the period in which claimants could qualify for the bonus. However, the declining New Jersey bonus had little impact on long-term claimants who exhausted their UI benefits. In contrast, the constant Illinois bonus had a substantial impact on long-term claimants, thereby reducing the rate at which claimants exhausted their UI benefits. This finding at least partly explains why the Illinois bonus had a larger impact on UI receipt than the New Jersey bonus.

Suggested Citation

  • Paul T. Decker, 1994. "The Impact of Reemployment Bonuses on Insured Unemployment in the New Jersey and Illinois Reemployment Bonus Experiments," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 718-741.
    • Handle: RePEc:uwp:jhriss:v:29:y:1994:iii:1:p:718-741
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/pdfplus/146250
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van der Klaauw, B. & van Ours, J.C., 2010. "Carrot and Stick : How Reemployment Bonuses and Benefit Sanctions Affect Job Finding Rates," Discussion Paper 2010-66, Tilburg University, Center for Economic Research.
    2. Dan A. Black & Mark C. Berger & Jeffrey A. Smith & Brett J. Noel, 1999. "Is the Threat of Training More Effective Than Training Itself? Experimental Evidence from the UI System," University of Western Ontario, Departmental Research Report Series 9907, University of Western Ontario, Department of Economics.
    3. Ahn, Taehyun, 2018. "Assessing the effects of reemployment bonuses on job search: A regression discontinuity approach," Journal of Public Economics, Elsevier, vol. 165(C), pages 82-100.
    4. Hyun Kim & Yong-seong Kim & Myoung-jae Lee, 2012. "Treatment effect analysis of early reemployment bonus program: panel MLE and mode-based semiparametric estimator for interval truncation," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 11(3), pages 189-209, December.
    5. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2002. "Is the Threat of Reemployment Services More Effective than the Services Themselves? Experimental Evidence from the UI System," NBER Working Papers 8825, National Bureau of Economic Research, Inc.
    6. Paul Decker & Christopher J. O'Leary & Stephen A. Woodbury, 2001. "Impacts on Employment and Earnings," Book chapters authored by Upjohn Institute researchers, in: Philip K. Robins & Robert G. Spiegelman (ed.), Reemployment Bonuses in the Unemployment Insurance System: Evidence from Three Field Experiments, chapter 5, pages 151-174, W.E. Upjohn Institute for Employment Research.
    7. Christopher J. O'Leary & Paul T. Decker & Stephen A. Wandner, 2002. "Targeting Reemployment Bonuses," Book chapters authored by Upjohn Institute researchers, in: Stephen A. Wandner & Randall W. Eberts & Christopher J. O'Leary (ed.), Targeting Employment Services, chapter 6, pages 161-182, W.E. Upjohn Institute for Employment Research.
    8. Peter Dolton & Donal O'Neill, 2002. "The Long-Run Effects of Unemployment Monitoring and Work-Search Programs: Experimental Evidence from the United Kingdom," Journal of Labor Economics, University of Chicago Press, vol. 20(2), pages 381-403, Part.
    9. Donal O'Neill, 2000. "Evaluating Labour Market Interventions," Economics Department Working Paper Series n990300, Department of Economics, National University of Ireland - Maynooth.
    10. Yosuke Oda, 2008. "Alteration in Skills and Career-Enhancing in a Frictional Labor Market," Discussion Papers in Economics and Business 08-09, Osaka University, Graduate School of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:jhriss:v:29:y:1994:iii:1:p:718-741. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://jhr.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.