We develop an empirical model to estimate the impact of UI on unemployment duration and reemployment wages. The model estimates the UI receipt, unemployment duration and re-employment wage equations simultaneously and incorporates unobserved heterogeneity variables in each equation and allows them to be correlated. The NLSY79 data is used to estimate the model. Some results are found support of the positive effect of UI on re-employment wages.
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Paper provided by Industrial Relations Center, University of Minnesota (Twin Cities Campus) in its series Working Papers with number
0306.
Length: Date of creation: Date of revision: Handle: RePEc:hrr:papers:0306
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