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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: Sep 1984
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Handle: RePEc:nbr:nberwo:0920

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Cited by:
  1. Carl Davidson & Stephen A. Woodbury, 1995. "Wage-Rate Subsidies for Dislocated Workers," Upjohn Working Papers and Journal Articles 95-31, W.E. Upjohn Institute for Employment Research.
  2. 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.
  3. Hansen, Gary D & Imrohoroglu, Ayse, 1992. "The Role of Unemployment Insurance in an Economy with Liquidity Constraints and Moral Hazard," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 118-42, February.
  4. Bruce D. Meyer, 1992. "Policy Lessons from the U.S. Unemployment Experiments," NBER Working Papers 4197, National Bureau of Economic Research, Inc.
  5. Patricia M. Anderson & Bruce D. Meyer, 1994. "Unemployment Insurance Benefits and Takeup Rates," NBER Working Papers 4787, National Bureau of Economic Research, Inc.
  6. Carl Davidson & Stephen A. Woodbury, 1996. "Unemployment Insurance and Unemployment: Implications of the Reemployment Bonus Experiments," Upjohn Working Papers and Journal Articles 96-44, W.E. Upjohn Institute for Employment Research.

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