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Unemployment insurance, unemployment durations and re-employment wages

  • McCall, Brian
  • Chi, Wei

We develop an empirical model to estimate the impact of UI on unemployment duration and re-employment wages. The model estimates the UI receipt, unemployment duration and re-employment wage equations simultaneously, incorporates unobserved heterogeneity variables in each equation and allows them to be correlated. The NLSY79 data is used to estimate the model. Some results are found in support of the positive effect of UI on re-employment wages.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4NYSXB2-4/1/36c3d8ca1cd1ad3816e6e160f1446399
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 99 (2008)
Issue (Month): 1 (April)
Pages: 115-118

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Handle: RePEc:eee:ecolet:v:99:y:2008:i:1:p:115-118
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  1. Addison, John T. & Blackburn, McKinley L., 2000. "The effects of unemployment insurance on postunemployment earnings," Labour Economics, Elsevier, vol. 7(1), pages 21-53, January.
  2. David Card & Phillip B. Levine, 1998. "Extended Benefits and the Duration of UI Spells: Evidence from the New Jersey Extended Benefit Program," NBER Working Papers 6714, National Bureau of Economic Research, Inc.
  3. Bruce K. Fallick, 1989. "Unemployment Insurance and the Rate of Re-Employment of Displaced Workers," UCLA Economics Working Papers 550, UCLA Department of Economics.
  4. Bruce D. Meyer, 1988. "Unemployment Insurance And Unemployment Spells," NBER Working Papers 2546, National Bureau of Economic Research, Inc.
  5. Ham, John C & Rea, Samuel A, Jr, 1987. "Unemployment Insurance and Male Unemployment Duration in Canada," Journal of Labor Economics, University of Chicago Press, vol. 5(3), pages 325-53, July.
  6. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366, March.
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