IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v56y2002i1p3-22.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/001979390205600101
    Download Restriction: no

    File URL: https://libkey.io/10.1177/001979390205600101?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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..
    3. 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..
    4. repec:fth:prinin:412 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Patrick Arni & Rafael Lalive & Jan C. Van Ours, 2013. "How Effective Are Unemployment Benefit Sanctions? Looking Beyond Unemployment Exit," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(7), pages 1153-1178, November.
    2. repec:ces:ifodic:v:3:y:2005:i:2:p:14567650 is not listed on IDEAS
    3. Marios Michaelides & Peter Mueser, 2020. "The Labor Market Effects of US Reemployment Policy: Lessons from an Analysis of Four Programs during the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1099-1140.
    4. Marios Michaelides & Peter Mueser, 2018. "Are Reemployment Services Effective? Experimental Evidence from the Great Recession," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 37(3), pages 546-570, June.
    5. Jesse Rothstein & Till von Wachter, 2016. "Social Experiments in the Labor Market," NBER Working Papers 22585, National Bureau of Economic Research, Inc.
    6. Andersson, Josefine, 2018. "Early counselling of displaced workers - effects of collectively funded job search assistance," Working Paper Series 2018:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Arni, Patrick & Schiprowski, Amelie, 2019. "Job search requirements, effort provision and labor market outcomes," Journal of Public Economics, Elsevier, vol. 169(C), pages 65-88.
    8. Bruno Crépon & Muriel Dejemeppe & Marc Gurgand, 2005. "Counseling the unemployed: does it lower unemployment duration and recurrence?," Working Papers halshs-00590769, HAL.
    9. Ioana E. Marinescu, 2017. "Job search monitoring and assistance for the unemployed," IZA World of Labor, Institute of Labor Economics (IZA), pages 380-380, August.
    10. Patrick Hullegie & Jan Ours, 2014. "Seek and Ye Shall Find: How Search Requirements Affect Job Finding Rates of Older Workers," De Economist, Springer, vol. 162(4), pages 377-395, December.
    11. Manning, Alan, 2011. "Imperfect Competition in the Labor Market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 11, pages 973-1041, Elsevier.
    12. Bart Cockx & Muriel Dejemeppe & Andrey Launov & Bruno Van der Linden, 2018. "Imperfect Monitoring of Job Search: Structural Estimation and Policy Design," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 75-120.
    13. Gerard J. Van den Berg & Bas van der Klaauw, 2005. "Job Search Monitoring and Sanctions," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(02), pages 26-29, July.
    14. Malory Rennoir & Ilan Tojerow, 2019. "Évaluation de l’ensemble du dispositif de contrôle de la disponibilité des chômeurs, tel que mis en œuvre au sein du Forem," ULB Institutional Repository 2013/292150, ULB -- Universite Libre de Bruxelles.
    15. Muriel Dejemeppe & Bruno Van der Linden & Andrey Launov & Bart Cockx, 2011. "Monitoring and Sanctions in a Non-Stationary Structural Job-Search Model," 2011 Meeting Papers 501, Society for Economic Dynamics.
    16. Peter Mueser & Marios Michaelides, 2015. "Are Reemployment Services Effective? Experimental Evidence from the Great Recession (WP 15-09 is now WP 18-04)," Working Papers 1509, Department of Economics, University of Missouri, revised Feb 2018.
    17. Schiprowski, Amelie & Arni, Patrick, 2016. "Strengthening Enforcement in Unemployment Insurance. A Natural Experiment," VfS Annual Conference 2016 (Augsburg): Demographic Change 145723, Verein für Socialpolitik / German Economic Association.
    18. Gerard J. van den Berg & Bas van der Klaauw, 2019. "Structural Empirical Evaluation Of Job Search Monitoring," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(2), pages 879-903, May.
    19. Sebastien Menard & Solenne Tanguy, 2017. "Revisiting Hopenhayn and Nicolini 's optimal unemployment insurance with job search monitoring and sanctions," TEPP Working Paper 2017-08, TEPP.
    20. Duncan McVicar, 2020. "The impact of monitoring and sanctioning on unemployment exit and job-finding rates," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-49, June.
    21. DUNCAN McVICAR, 2010. "Does Job Search Monitoring Intensity Affect Unemployment? Evidence from Northern Ireland," Economica, London School of Economics and Political Science, vol. 77(306), pages 296-313, April.
    22. Hägglund, Pathric, 2009. "Experimental evidence from intensified placement efforts among unemployed in Sweden," Working Paper Series 2009:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    23. Lachowska, Marta & Meral, Merve & Woodbury, Stephen A., 2016. "Effects of the unemployment insurance work test on long-term employment outcomes," Labour Economics, Elsevier, vol. 41(C), pages 246-265.
    24. International Monetary Fund, 2012. "Belgium: Selected Issues Paper," IMF Staff Country Reports 2012/056, International Monetary Fund.
    25. Marios Michaelides & Peter Mueser, 2015. "The labor market effects of U.S. reemployment programs during the great recession," University of Cyprus Working Papers in Economics 08-2015, University of Cyprus Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manning, Alan, 2004. "Monopsony and the efficiency of labour market interventions," Labour Economics, Elsevier, vol. 11(2), pages 145-163, April.
    2. Sènakpon Fidèle A. Dedehouanou & Luca Tiberti & Hilaire G. Houeninvo & Djohodo Inès Monwanou, 2019. "Working while studying: Employment premium or penalty for youth in Benin?," Working Papers PMMA 2019-03, PEP-PMMA.
    3. Sandra Müllbacher & Wolfgang Nagl, 2017. "Labour supply in Austria: an assessment of recent developments and the effects of a tax reform," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 465-486, August.
    4. Insoo Cho & Peter F. Orazem, 2021. "How endogenous risk preferences and sample selection affect analysis of firm survival," Small Business Economics, Springer, vol. 56(4), pages 1309-1332, April.
    5. Walter Beckert, 2015. "Choice in the Presence of Experts," Birkbeck Working Papers in Economics and Finance 1503, Birkbeck, Department of Economics, Mathematics & Statistics.
    6. Cameron, Trudy Ann & Shaw, W. Douglass & Ragland, Shannon E. & Callaway, J. Mac & Keefe, Sally, 1996. "Using Actual And Contingent Behavior Data With Differing Levels Of Time Aggregation To Model Recreation Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-20, July.
    7. Annika Meng, 2010. "Long-term Care Responsibility and its Opportunity Costs," Ruhr Economic Papers 0168, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    8. Hans A. Holter & Dirk Krueger & Serhiy Stepanchuk, 2019. "How do tax progressivity and household heterogeneity affect Laffer curves?," Quantitative Economics, Econometric Society, vol. 10(4), pages 1317-1356, November.
    9. Ichimura, Hidehiko & Todd, Petra E., 2007. "Implementing Nonparametric and Semiparametric Estimators," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 74, Elsevier.
    10. Chen, Yuanyuan & Feng, Shuaizhang & Han, Yujie, 2020. "The effect of primary school type on the high school opportunities of migrant children in China," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 325-338.
    11. Michael Raper, 1999. "Self-selection bias and cost-of-living estimates," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 23(1), pages 64-77, March.
    12. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2014. "Innovation and Productivity in Services: Evidence from Germany, Ireland and the United Kingdom," JRC Working Papers on Corporate R&D and Innovation 2014-04, Joint Research Centre (Seville site).
    13. Bernadette Power & Gavin C Reid, 2003. "Turbulence, Flexibility and Performance of the Long-lived Small Firm," Tinbergen Institute Discussion Papers 03-039/3, Tinbergen Institute.
    14. Aizenman, Joshua & Ito, Hiro & Pasricha, Gurnain Kaur, 2022. "Central bank swap arrangements in the COVID-19 crisis," Journal of International Money and Finance, Elsevier, vol. 122(C).
    15. Asaduzzaman, M. & Anik, Asif Reza, 2017. "Determinants of Adoption of Rice Yield Gap Minimisation Technology in Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 40(1-2), pages 73-96, March-Jun.
    16. Fernandes, Marcelo & Mergulhão, João, 2016. "Anticipatory effects in the FTSE 100 index revisions," Journal of Empirical Finance, Elsevier, vol. 37(C), pages 79-90.
    17. Trottmann, Maria & Zweifel, Peter & Beck, Konstantin, 2012. "Supply-side and demand-side cost sharing in deregulated social health insurance: Which is more effective?," Journal of Health Economics, Elsevier, vol. 31(1), pages 231-242.
    18. Banal-Estañol, Albert & Duso, Tomaso & Seldeslachts, Jo & Szücs, Florian, 2022. "R&D spillovers through RJV cooperation," Research Policy, Elsevier, vol. 51(4).
    19. Thomas B. King, 2008. "Discipline and Liquidity in the Interbank Market," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(2‐3), pages 295-317, March.
    20. Renuka Sane & Susan Thomas, 2020. "From Participation To Repurchase: Low Income Households And Micro‐insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 87(3), pages 783-814, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:56:y:2002:i:1:p:3-22. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.ilr.cornell.edu .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.