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Unemployment Insurance and Labor Force Transitions

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  • Kim B. Clark
  • Lawrence H. Summers

Abstract

This paper reports preliminary estimates of an econometric simulation model capable of a comprehensive evaluation of the effects of unemployment insurance on measured and actual employment, unemployment and non-participation. The data are longitudinal comprising information on 75,000 households sampled in the Current Population Surveys of March and April 1978. The simulation model is constructed from multi- nomial logit equations characterizing individuals' labor force transitions. These equations provide estimates of the effects of UI on job loss, labor force exit, and entry into the labor force, as well as the effect of UI on unemployment duration and temporary layoffs. The results are rather inconclusive, but suggest the importance of further research on I21 and transitions in and out of the labor force.

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File URL: http://www.nber.org/papers/w0920.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0920.

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Date of creation: Jun 1982
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Publication status: published as Clark, Kim B. and Lawrence H. Summers. "Unemployment Insurance and Labor Market Transitions." Workers, Jobs, and Inflation, edited by Martin N. Baily, pp. 279-318. Washington: Brookings Insitution, 1982.
Handle: RePEc:nbr:nberwo:0920

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Cited by:
  1. Hansen, G.D. & Imrohoroglu, A., 1990. "The Role Of Unemployment Insurance In An Economy With Liquidity Constraints And Moral Hazard," Papers 21, California Los Angeles - Applied Econometrics.
  2. Carl Davidson & Stephen A. Woodbury, 1995. "Wage-Rate Subsidies for Dislocated Workers," Book chapters authored by Upjohn Institute researchers, in: Advisory Council on Unemployment Compensation: Background Papers, volume 2, pages T-1-T61 W.E. Upjohn Institute for Employment Research.
  3. Carl Davidson & Stephen A. Woodbury, 1996. "Unemployment Insurance and Unemployment Implications of the Reemployment Bonus Experiments," Book chapters authored by Upjohn Institute researchers, in: Advisory Council on Unemployment Compensation: Background Papers, volume 3, pages KK1-KK37 W.E. Upjohn Institute for Employment Research.
  4. Bruce D. Meyer, 1992. "Policy Lessons from the U.S. Unemployment Experiments," NBER Working Papers 4197, National Bureau of Economic Research, Inc.
  5. Carl Davidson & Stephen A. Woodbury, 1990. "The Displacement Effect of Reemployment Bonus Programs," Upjohn Working Papers and Journal Articles 90-02, W.E. Upjohn Institute for Employment Research.
  6. Patricia M. Anderson & Bruce D. Meyer, 1994. "Unemployment Insurance Benefits and Takeup Rates," NBER Working Papers 4787, National Bureau of Economic Research, Inc.

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