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Evaluating Pooled Evidence from the Reemployment Bonus Experiments

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  • Paul T. Decker

    (Mathematica Policy Research)

  • Christopher J. O'Leary

    ()
    (W.E. Upjohn Institute for Employment Research)

Abstract

Social experiments conducted in Pennsylvania and Washington tested the effect of offering Unemployment Insurance (UI) claimants a cash bonus for rapid reemployment. This paper combines data from the two experiments and uses a consistent framework to evaluate the experiments and determine with greater certainty the extent to which a reemployment bonus can affect economic outcomes. Bonus offers in each of the experiments generated statistically significant but relatively modest reductions in UI receipt. Since the estimated impacts on UI receipt were modest, the reemployment bonuses did not generate the UI savings necessary to pay for administering and paying the bonuses. Hence, contrary to earlier findings from a bonus experiment conducted in Illinois, findings from the Pennsylvania and Washington experiments strongly suggest that a reemployment bonus is not a cost-effective method of speeding the reemployment of UI claimants.

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Bibliographic Info

Paper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number 94-28.

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Date of creation: 1994
Date of revision:
Handle: RePEc:upj:weupjo:94-28

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Keywords: unemployment; insurance; bonus; experiments; O'Leary; Decker;

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References

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  1. Paul T. Decker & Christopher J. O'Leary., 1991. "An Analysis of Pooled Evidence From the Pennsylvania and Washington Reemployment Bonus Demonstrations," Mathematica Policy Research Reports 1134, Mathematica Policy Research.
  2. Bruce D. Meyer, 1991. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
  3. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
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Citations

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Cited by:
  1. Christopher J. O'Leary & Stephen A. Wandner, 2000. "Unemployment Compensation and Older Workers," Upjohn Working Papers and Journal Articles 00-61, W.E. Upjohn Institute for Employment Research.
  2. Kletzer, Lori, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Center for International Economics, Working Paper Series qt27w182ht, Center for International Economics, UC Santa Cruz.
  3. van der Klaauw, Bas & van Ours, Jan C., 2010. "Carrot and Stick: How Reemployment Bonuses and Benefit Sanctions Affect Job Finding Rates," CEPR Discussion Papers 7924, C.E.P.R. Discussion Papers.
  4. Kletzer, Lori, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Department of Economics, Working Paper Series qt27w182ht, Department of Economics, UC Santa Cruz.
  5. Christopher J. O'Leary & Paul T. Decker & Stephen A. Wandner, . "Cost-Effectiveness of Targeted Reemployment Bonuses," Upjohn Working Papers and Journal Articles cjo2005jhr, W.E. Upjohn Institute for Employment Research.
  6. Karen E. Needels & Walter Nicholson, 1999. "An Analysis of Unemployment Insurance Durations Since the 1990-1992 Recession," Mathematica Policy Research Reports 2823, Mathematica Policy Research.
  7. Hyun Kim & Yong-seong Kim & Myoung-jae Lee, 2012. "Treatment effect analysis of early reemployment bonus program: panel MLE and mode-based semiparametric estimator for interval truncation," Portuguese Economic Journal, Springer, vol. 11(3), pages 189-209, December.
  8. Christopher J. O'Leary, 2004. "Evaluating the Effectiveness of Labor Exchange Services," Book chapters authored by Upjohn Institute researchers, W.E. Upjohn Institute for Employment Research.
  9. Yosuke Oda, 2008. "Alteration in Skills and Career-Enhancing in a Frictional Labor Market," Discussion Papers in Economics and Business 08-09, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  10. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 1999. "Is the Threat of Training More Effective Than Training Itself? Experimental Evidence from the UI System," UWO Department of Economics Working Papers 9913, University of Western Ontario, Department of Economics.
  11. Bas van der Klaauw & Jan C. van Ours, 2010. "Carrot and Stick: How Reemployment Bonuses and Benefit Sanctions affect Job Finding Rates," Tinbergen Institute Discussion Papers 10-064/3, Tinbergen Institute.
  12. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2002. "Is the Threat of Reemployment Services More Effective than the Services Themselves? Experimental Evidence from the UI System," NBER Working Papers 8825, National Bureau of Economic Research, Inc.
  13. Christopher J. O'Leary, 1999. "Promoting Self Employment Among the Unemployed in Hungary and Poland," Upjohn Working Papers and Journal Articles 99-55, W.E. Upjohn Institute for Employment Research.
  14. Paul T. Decker, 2003. "The Effect of Unemployment Compensation on the Reemployment of Recipients," Mathematica Policy Research Reports 3520, Mathematica Policy Research.

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