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A review on the elasticity of unemployment duration to the potential duration of unemployment benefits

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  • Marta C. Lopes

Abstract

In this paper, I present an exhaustive literature review on the empirical work that estimated the impact of the potential duration of unemployment insurance on unemployment duration, measured in a week‐to‐week elasticity. For each study, I include information on data—county, period of analysis, type of database, gender, and age, estimation—estimation model, unobserved heterogeneity, and source of identification, and average effect. The range of estimates is wide: from 0.02 to 1.3 weeks for each additional week of potential duration. This review suggests that larger estimates belong to studies analyzing North America before the 1990s, Europe in more recent periods, survey data, female, older individuals, using other estimation techniques than survival analysis, or survival analysis that account for unobserved heterogeneity.

Suggested Citation

  • Marta C. Lopes, 2022. "A review on the elasticity of unemployment duration to the potential duration of unemployment benefits," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1212-1224, September.
    • Handle: RePEc:bla:jecsur:v:36:y:2022:i:4:p:1212-1224
    DOI: 10.1111/joes.12479
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    3. Joseph, Gilles & Maingé, Paul-Emile, 2023. "Characterization of optimal durations of unemployment benefits in a nonstationary job search model," Mathematical Social Sciences, Elsevier, vol. 125(C), pages 76-93.
    4. Mike Brewer & Thang Dang & Emma Tominey, 2023. "Welfare reform: Employment, mental health and intrahousehold insurance," CEPEO Working Paper Series 23-06, UCL Centre for Education Policy and Equalising Opportunities.
    5. Brewer, Mike & Dang, Thang & Tominey, Emma, 2024. "Universal Credit: Welfare reform and mental health," Journal of Health Economics, Elsevier, vol. 98(C).
    6. Thomas Le Barbanchon & Johannes F. Schmieder & Andrea Weber, 2024. "Job Search, Unemployment Insurance, and Active Labor Market Policies," NBER Working Papers 32720, National Bureau of Economic Research, Inc.
    7. Groves, Jeremy & Wilcox, Virginia, 2023. "The impact of overweight and obesity on unemployment duration among young American workers," Economics & Human Biology, Elsevier, vol. 51(C).
    8. Robert A. Moffitt, 2014. "Unemployment benefits and unemployment," World of Labour, LISER, pages 1-13, May.
    9. Benoît Bayenet & Ilan Tojerow & Martin Rodriguez Conde & Anna Zaytseva, 2024. "Limitation des allocations de chômage dans le temps :une mesure efficace ?," Dulbea Policy Brief 24.08, ULB -- Universite Libre de Bruxelles.

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