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Unemployment Insurance Rules, Joblessness, and Part-Time Work

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  • McCall, Brian P

Abstract

In most states, unemployment insurance recipients accepting part-time work can earn up to a specific amount (the 'disregard') with no reduction in benefits. For earnings above the disregard, benefits are reduced dollar for dollar. This paper analyzes the effects of changes in the disregard on job search behavior. Using data from the Current Population Survey's Displaced Worker Supplements and a competing risks model with correlated risks and time-varying coefficients, an increase in the disregard is found to significantly increase the conditional probability of part-time reemployment during the first three months of joblessness. Copyright 1996 by The Econometric Society.

Suggested Citation

  • McCall, Brian P, 1996. "Unemployment Insurance Rules, Joblessness, and Part-Time Work," Econometrica, Econometric Society, vol. 64(3), pages 647-682, May.
    • Handle: RePEc:ecm:emetrp:v:64:y:1996:i:3:p:647-82
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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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