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Effects of unemployment insurance work-search requirements: The Maryland experiment

  • Daniel H. Klepinger
  • Terry R. Johnson
  • Jutta M. Joesch
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    This paper describes findings from a 1994 experimental evaluation of alternative work-search requirements in the Unemployment Insurance (UI) program. Requiring additional employer contacts or verification of contacts reduced UI receipt by one week and $115 per claimant. Because these additional requirements did not entail additional re-employment services, the UI spell reduction can be attributed to increased non-monetary costs for remaining on UI. A job-search workshop requirement reduced UI receipt by half a week and $75 per claimant, and additional results indicate that the effects were due to increased costs of continued UI receipt rather than to enhanced job-search productivity. These treatments did not affect employment or earnings, implying that reduced UI duration led to more intensive job search, rather than a reduction in the reservation wage. In contrast, elimination of the employer contact requirement increased UI receipt and post-UI earnings, suggesting that delayed exit from UI improved job matches. (Author's abstract.)

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    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 56 (2002)
    Issue (Month): 1 (October)
    Pages: 3-22

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    Handle: RePEc:ilr:articl:v:56:y:2002:i:1:p:3-22
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