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A Quasi-Experimental Approach to the Effects of Unemployment Insurance

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Author Info
Bruce D. Meyer

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Abstract

This paper uses the natural experiment provided by periodic increases in state benefit levels to estimate the effects of higher unemployment insurance benefits, individuals who filed just before and just after sixteen benefit increases are compared using data from five states during 1979-1984. The increases, which average about 9 percent, are found to increase the period of unemployment insurance receipt by about one week. This effect is precisely estimated and found using several approaches. the incidence of layoffs resulting in unemployment insurance claims is unaffected by the increases. The evidence does not suggest that higher benefits lead to better jobs. In fact, the post-unemployment earnings of individuals receiving higher benefits are estimated to fall slightly, but the estimates are imprecise.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3159.

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Date of creation: Nov 1989
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Handle: RePEc:nbr:nberwo:3159

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ronald G. Ehrenberg, 1989. "Workers' Compensation, Wages, and the Risk of Injury," NBER Working Papers 1538, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Topel, Robert H, 1983. "On Layoffs and Unemployment Insurance," American Economic Review, American Economic Association, vol. 73(4), pages 541-59, September. [Downloadable!] (restricted)
  3. Danziger, Sheldon & Haveman, Robert & Plotnick, Robert, 1981. "How Income Transfer Programs Affect Work, Savings, and the Income Distribution: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 975-1028, September. [Downloadable!] (restricted)
  4. Mortensen, Dale T, 1970. "Job Search, the Duration of Unemployment, and the Phillips Curve," American Economic Review, American Economic Association, vol. 60(5), pages 847-62, December. [Downloadable!] (restricted)
  5. Frank Brechling, 1977. "Unemployment insurance taxes and labor turnover: Summary of theoretical findings," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 30(4), pages 483-492, July.
  6. Woodbury, Stephen A & Spiegelman, Robert G, 1987. "Bonuses to Workers and Employers to Reduce Unemployment: Randomized Trials in Illinois," American Economic Review, American Economic Association, vol. 77(4), pages 513-30, September. [Downloadable!] (restricted)
  7. Feldstein, Martin S, 1978. "The Effect of Unemployment Insurance on Temporary Layoff Unemployment," American Economic Review, American Economic Association, vol. 68(5), pages 834-46, December. [Downloadable!] (restricted)
  8. Katz, Lawrence F & Meyer, Bruce D, 1990. "Unemployment Insurance, Recall Expectations, and Unemployment Outcomes," The Quarterly Journal of Economics, MIT Press, vol. 105(4), pages 973-1002, November. [Downloadable!] (restricted)
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  9. Finis Welch, 1977. "What have we learned from empirical studies of unemployment insurance?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 30(4), pages 451-461, July.
  10. Martin S. Feldstein, 1975. "The Importance of Temporary Layoffs: An Empirical Analysis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 6(1975-3), pages 725-745. [Downloadable!]
  11. Topel, Robert H, 1984. "Experience Rating of Unemployment Insurance and the Incidence of Unemployment," Journal of Law & Economics, University of Chicago Press, vol. 27(1), pages 61-90, April.
  12. Frank Brechling, 1981. "Layoffs and Unemployment Insurance," NBER Chapters, in: Studies in Labor Markets, pages 187-208 National Bureau of Economic Research, Inc. [Downloadable!]
  13. repec:fth:prinin:144 is not listed on IDEAS
  14. Gary Solon, 1981. "Unemployment Insurance, Filing Delay, and Unemployment Duration," Working Papers 524, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  15. Solon, Gary R, 1985. "Work Incentive Effects of Taxing Unemployment Benefits," Econometrica, Econometric Society, vol. 53(2), pages 295-306, March. [Downloadable!] (restricted)
    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Courtney Coile & Jonathan Gruber, 2000. "Social Security Incentives for Retirement," NBER Working Papers 7651, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Røed, Knut & Jensen, Peter & Thoursie, Anna, 2003. "Unemployment Duration, Incentives and Institutions - A Micro-Econometric Analysis Based on Scandinavian Data," Memorandum 09/2002, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  3. repec:fth:prinin:261 is not listed on IDEAS
  4. Janet Currie & Jonathan Gruber, 1994. "Saving Babies: The Efficacy and Cost of Recent Expansions of Medicaid Eligibility for Pregnant Women," NBER Working Papers 4644, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Alan Krueger, 1990. "Worker's Compensation Insurance and the Duration of Workplace Injuries," Working Papers 641, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  6. repec:fth:prinin:390 is not listed on IDEAS
  7. Kelly Edmiston, 2005. "Worker's compensation and state employment growth," Community Affairs Research Working Paper 2005-04, Federal Reserve Bank of Kansas City. [Downloadable!]
    Other versions:
  8. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January. [Downloadable!] (restricted)
  9. Peter Diamond & Jonathan Gruber, 1997. "Social Security and Retirement in the U.S," NBER Working Papers 6097, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Bruce D. Meyer & W. Kip Viscusi & David L. Durbin, 1990. "Workers' Compensation and Injury Duration: Evidence from a Natural Experiment," NBER Working Papers 3494, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Bruce D. Meyer & Wallace K. C. Mok, 2007. "Quasi-Experimental Evidence on the Effects of Unemployment Insurance from New York State," NBER Working Papers 12865, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  12. Bruce D. Meyer, 1994. "Natural and Quasi- Experiments in Economics," NBER Technical Working Papers 0170, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Bruce D. Meyer, 1992. "Policy Lessons from the U.S. Unemployment Experiments," NBER Working Papers 4197, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Patricia M. Anderson & Bruce D. Meyer, 1994. "The Effects of Unemployment Insurance Taxes and Benefits on Layoffs Using Firm and Individual Data," NBER Working Papers 4960, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Jonathan Gruber, 1994. "The Consumption Smoothing Benefits of Unemployment Insurance," NBER Working Papers 4750, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Jonathan Gruber & Brigitte C. Madrian, 1995. "Non-Employment and Health Insurance Coverage," NBER Working Papers 5228, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Cockx, Bart & Ridder, Geert, 1996. "Social employment of welfare recipients in Belgium: an evaluation," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1996018, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
    Other versions:
  18. Kenneth Carling & Bertil Holmlund & Altin Vejsiu, 2000. "Do Benefit Cuts Boost Job Findings? Swedish Evidence From the 1990s," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  19. Daron Acemoglu & Robert Shimer, 1999. "Productivity Gains from Unemployment Insurance," NBER Working Papers 7352, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  20. John H. Tyler & Richard J. Murnane & John B. Willett, 1998. "Estimating the Impact of the GED on the Earnings of Young Dropouts Using a Series of Natural Experiments," NBER Working Papers 6391, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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