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Evaluating Pooled Evidence from the Reemployment Bonus Experiments

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Author Info
Paul T. Decker (Mathematica Policy Research)
Christopher J. O'Leary () (W.E. Upjohn Institute for Employment Research)

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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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Publisher Info
Paper provided by W.E. Upjohn Institute for Employment Research in its series Staff Working Papers with number 94-28.

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

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

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Find related papers by JEL classification:
J0 - Labor and Demographic Economics - - General
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
H5 - Public Economics - - National Government Expenditures and Related Policies

References listed on IDEAS
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  1. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April. [Downloadable!] (restricted)
  2. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July. [Downloadable!] (restricted)
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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. Christopher J. O'Leary & Paul Decker & Stephen A. Wandner, 1997. "Reemployment Bonuses and Profiling," Staff Working Papers 98-51, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  2. Gary Burtless, 2001. "Can Supply-Side Policies Reduce Unemployment? Lessons from North America," CEPR Discussion Papers 440, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
    Other versions:
  3. Christopher J. O'Leary & Stephen A. Wandner, 2000. "Unemployment Compensation and Older Workers," Staff Working Papers 00-61, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  4. Jeffrey Smith, 2000. "Is the Threat of Training More Effective than Training Itself? Experimental Evidence from the UI System," Econometric Society World Congress 2000 Contributed Papers 1660, Econometric Society. [Downloadable!]
    Other versions:
  5. 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). [Downloadable!]
  6. Christopher J. O'Leary & Paul T. Decker & Stephen A. Wandner, 2003. "Cost-Effectiveness of Targeted Reemployment Bonuses," Staff Working Papers 03-51, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  7. Christopher J. O'Leary, 1999. "Promoting Self Employment Among the Unemployed in Hungary and Poland," Staff Working Papers 99-55, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
  9. Lori Kletzer, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Center for International Economics, Working Paper Series 1026, Center for International Economics, UC Santa Cruz. [Downloadable!]
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