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Unemployment Insurance, Unemployment Durations and Re-employment Wages

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  • Brian McCall

    ()

  • Wei Chi

    ()

Abstract

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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File URL: http://www.legacy-irc.csom.umn.edu/RePEC/hrr/papers/0306.pdf
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Paper provided by Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus) in its series Working Papers with number 0306.

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Handle: RePEc:hrr:papers:0306

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  1. David Card & Phillip B. Levine, 1998. "Extended Benefits and the Duration of UI Spells: Evidence from the New Jersey Extended Benefit Program," NBER Working Papers 6714, National Bureau of Economic Research, Inc.
  2. Addison, John T. & Blackburn, McKinley L., 2000. "The effects of unemployment insurance on postunemployment earnings," Labour Economics, Elsevier, vol. 7(1), pages 21-53, January.
  3. Fallick, Bruce Chelimsky, 1991. "Unemployment Insurance and the Rate of Re-employment of Displaced Workers," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 228-35, May.
  4. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366.
  5. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July.
  6. Ham, John C & Rea, Samuel A, Jr, 1987. "Unemployment Insurance and Male Unemployment Duration in Canada," Journal of Labor Economics, University of Chicago Press, vol. 5(3), pages 325-53, July.
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Cited by:
  1. Simoes, Nadia, 2013. "Subsídio de desemprego: uma revisão da literatura teórica e empírica
    [Unemployment insurance: a survey]
    ," MPRA Paper 52332, University Library of Munich, Germany.
  2. Cockx, Bart & Picchio, Matteo, 2011. "Scarring Effects of Remaining Unemployed for Long-Term Unemployed School-Leavers," IZA Discussion Papers 5937, Institute for the Study of Labor (IZA).
  3. repec:ces:ifodre:v:18:y:2011:i:03:p:3-7 is not listed on IDEAS
  4. Stefan Arent & Wolfgang Nagl, 2011. "Löhne und Arbeitslosengeld: Wie haben sich die HARTZ-Reformen auf die Lohnentwicklung ausgewirkt?," ifo Dresden berichtet, Ifo Institute for Economic Research at the University of Munich, vol. 18(03), pages 03-07, 06.
  5. Gaure, Simen & Røed, Knut & Westlie, Lars, 2012. "Job search incentives and job match quality," Labour Economics, Elsevier, vol. 19(3), pages 438-450.
  6. Stefan Arent & Wolfgang Nagl, 2011. "Unemployment Benefit and Wages: The Impact of the Labor Market Reform in Germany on (Reservation) Wages," Ifo Working Paper Series Ifo Working Paper No. 101, Ifo Institute for Economic Research at the University of Munich.
  7. Jahn, Elke J. & Rosholm, Michael, 2014. "Looking beyond the bridge: The effect of temporary agency employment on labor market outcomes," European Economic Review, Elsevier, vol. 65(C), pages 108-125.

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