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Effects of Unemployment Insurance Work-Search Requirements: The Maryland Experiment

Author

Listed:
  • Daniel H. Klepinger
  • Terry R. Johnson
  • Jutta M. Joesch

Abstract

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.

Suggested Citation

  • Daniel H. Klepinger & Terry R. Johnson & Jutta M. Joesch, 2002. "Effects of Unemployment Insurance Work-Search Requirements: The Maryland Experiment," ILR Review, Cornell University, ILR School, vol. 56(1), pages 3-22, October.
    • Handle: RePEc:sae:ilrrev:v:56:y:2002:i:1:p:3-22
    DOI: 10.1177/001979390205600101
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    References listed on IDEAS

    as
    1. Terry R. Johnson & Daniel H. Klepinger, 1994. "Experimental Evidence on Unemployment Insurance Work-Search Policies," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 665-717.
    2. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    3. Bruce D. Meyer, 1995. "Lessons from the U.S. Unemployment Insurance Experiments," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 91-131, March.
    4. repec:fth:prinin:412 is not listed on IDEAS
    5. James Heckman, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    6. Orley Ashenfelter & David Ashmore & Olivier Deschenes, 1998. "Do Unemployment Insurance Recipients Actively Seek Work? Randomized Trials in Four U.S. States," Working Papers 791, Princeton University, Department of Economics, Industrial Relations Section..
    7. repec:mpr:mprres:2588 is not listed on IDEAS
    8. Orley Ashenfelter & David Ashmore & Olivier Deschenes, 1998. "Do Unemployment Insurance Recipients Actively Seek Work? Randomized Trials in Four U.S. States," Working Papers 791, Princeton University, Department of Economics, Industrial Relations Section..
    Full references (including those not matched with items on IDEAS)

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