Advanced Search
MyIDEAS: Login to save this paper or follow this series

Unemployment Durations and Extended Unemployment Benefits in Local Labor Markets

Contents:

Author Info

  • Stepan Jurajda

    (CERGE-EI)

  • Frederick J. Tannery

    (Slippery Rock University ; University of Pittsburgh)

Abstract

Extended unemployment benefits programs in the US are triggered by the state insured unemployment rate while intrastate demand conditions often vary dramatically. Some tight local labor markets may therefore exhibit a large adverse effect of extended unemployment benefits. Using a competing risk duration model, this paper measures the size of the entitlement effect across two labor markets facing dramatically different demand conditions. This exercise is important for evaluating potential benefits of proposed sub-state trigger extended benefits programs. The empirical results indicate that, in both recall and new job hazard, the entitlement effect is stronger in low unemployment labor markets. This finding is robust across a number of alternative specifications and econometric approaches. Implementing sub-state trigger extended benefits programs may therefore yield substantial benefits in terms of reducing the adverse incentives of unemployment insurance.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://128.118.178.162/eps/lab/papers/0012/0012006.pdf
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Labor and Demography with number 0012006.

as in new window
Length: 35 pages
Date of creation: 19 Feb 2001
Date of revision:
Handle: RePEc:wpa:wuwpla:0012006

Note: Type of Document - Acrobat PDF; pages: 35 ; figures: Included
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. John C. Ham & Samuel Rea, 1986. "Unemployment Insurance and Male Unemployment Duration in Canada," Working Papers 592, Princeton University, Department of Economics, Industrial Relations Section..
  2. Lawrence Katz & Bruce Meyer, 1988. "The Impact of the Potential Duration of Unemployment Benefits on the Duration of Unemployment," Working Papers 621, Princeton University, Department of Economics, Industrial Relations Section..
  3. Anderson, Patricia M, 1992. "Time-Varying Effects of Recall Expectation, a Reemployment Bonus, and Job Counseling on Unemployment Durations," Journal of Labor Economics, University of Chicago Press, vol. 10(1), pages 99-115, January.
  4. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
  5. McCall, Brian P, 1996. "Unemployment Insurance Rules, Joblessness, and Part-Time Work," Econometrica, Econometric Society, vol. 64(3), pages 647-82, May.
  6. Dale Mortensen, 1984. "Job Search and Labor Market Analysis," Discussion Papers 594, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  7. Imbens, Guido W. & Lynch, Lisa M., 2006. "Re-Employment Probabilities over the Business Cycle," IZA Discussion Papers 2167, Institute for the Study of Labor (IZA).
  8. Pissarides, Christopher A, 1982. "Job Search and the Duration of Layoff Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 595-612, November.
  9. Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M.
  10. Berg, G.J. van den, 1987. "Nonstationarity in job search theory," Research Memorandum 242, Tilburg University, Faculty of Economics and Business Administration.
  11. Atkinson, Anthony B & Micklewright, John, 1991. "Unemployment Compensation and Labor Market Transitions: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1679-1727, December.
  12. Ham, John C & LaLonde, Robert J, 1996. "The Effect of Sample Selection and Initial Conditions in Duration Models: Evidence from Experimental Data on Training," Econometrica, Econometric Society, vol. 64(1), pages 175-205, January.
  13. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Camille Landais & Pascal Michaillat & Emmanuel Saez, 2013. "Optimal Unemployment Insurance over the Business Cycle," Discussion Papers 1303, Centre for Macroeconomics (CFM).
  2. Duncan McVicar & Jan M. Podivinsky, 2010. "Are Active Labour Market Programmes Least Effective Where They Are Most Needed? The Case of the British New Deal for Young People," Melbourne Institute Working Paper Series wp2010n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Andersen, Torben M. & Svarer, Michael, 2010. "Business Cycle Dependent Unemployment Insurance," IZA Discussion Papers 5196, Institute for the Study of Labor (IZA).
  4. Polachek, Solomon & Xiang, Jun, 2005. "The Effects of Incomplete Employee Wage Information: A Cross-Country Analysis," IZA Discussion Papers 1735, Institute for the Study of Labor (IZA).
  5. Valletta, Robert G., 2014. "Recent extensions of U.S. unemployment benefits: search responses in alternative labor market states," Working Paper Series 2014-13, Federal Reserve Bank of San Francisco.
  6. Valletta, Robert G., 2014. "Recent Extensions of U.S. Unemployment Benefits: Search Responses in Alternative Labor Market States," IZA Discussion Papers 8247, Institute for the Study of Labor (IZA).
  7. Tuulia Hakola, 2000. "Navigating through the Finnish Pension System," Discussion Papers 224, Government Institute for Economic Research Finland (VATT).
  8. Matthew Webb & Arthur Sweetman & Casey Warman, 2012. "How Targeted is Targeted Tax Relief? Evidence from the Unemployment Insurance Youth Hires Program," Working Papers 1298, Queen's University, Department of Economics.
  9. Stepan Jurajda, 1999. "Unemployment Outflow and Unemployment Insurance Taxes," CERGE-EI Working Papers wp143, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  10. Randall W. Eberts & Christopher J. O'Leary, 2003. "A New WPRS Profiling Model for Michigan," Book chapters authored by Upjohn Institute researchers, in: Joshua Riley & Aquila Branch & Stephen Wandner & Wayne Gordon (ed.), A Compilation of Selected Papers from the Employment and Training Administration's 2003 Biennial National Research Conference, ETA Occasional Paper 20, pages 130-184 W.E. Upjohn Institute for Employment Research.
  11. 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.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpla:0012006. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.