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The Impact of Unemployment Insurance Generosity on Match Quality Distribution

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  • Mário Centeno
  • Álvaro A. Novo

Abstract

This paper investigates the impact of unemployment insurance (UI) generosity on the distribution of match tenure. We show that more generous UI increases expected tenure, reducing the mass of the lower tail of match duration and increasing the duration of matches available. This impact is differentiated across education levels, with the larger benefits accruing to the less educated.

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File URL: http://www.bportugal.pt/en-US/BdP%20Publications%20Research/WP200612.pdf
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Bibliographic Info

Paper provided by Banco de Portugal, Economics and Research Department in its series Working Papers with number w200612.

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Date of creation: 2006
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Handle: RePEc:ptu:wpaper:w200612

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References

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  1. Daron Acemoglu & Robert Shimer, 1999. "Productivity Gains from Unemployment Insurance," Working papers 99-29, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Yannis Bilias & Roger Koenker, 2001. "Quantile regression for duration data: A reappraisal of the Pennsylvania Reemployment Bonus Experiments," Empirical Economics, Springer, vol. 26(1), pages 199-220.
  3. Roger Koenker & Zhijie Xiao, 2002. "Inference on the Quantile Regression Process," Econometrica, Econometric Society, vol. 70(4), pages 1583-1612, July.
  4. Mário Centeno, 2002. "The Match Quality Gains from Unemployment Insurance," Working Papers w200209, Banco de Portugal, Economics and Research Department.
  5. José A. F. Machado & Pedro Portugal, 2002. "Quantile Regression Methods: na Application to U.S. Unemployment Duration," Working Papers w200201, Banco de Portugal, Economics and Research Department.
  6. Phillip Levine, 1991. "Spillover Effects Between the Insured and Uninsured Unemployed," Working Papers 663, Princeton University, Department of Economics, Industrial Relations Section..
  7. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  8. Bernhardt, Annette, et al, 1999. "Trends in Job Instability and Wages for Young Adult Men," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages S65-90, October.
  9. Christian Belzil, 2001. "Unemployment insurance and subsequent job duration: job matching versus unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(5), pages 619-636.
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Cited by:
  1. Moyen, Stéphane & Stähler, Nikolai, 2009. "Unemployment insurance and the business cycle: prolong benefit entitlements in bad times?," Discussion Paper Series 1: Economic Studies 2009,30, Deutsche Bundesbank, Research Centre.

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