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Unemployment Compensation and Episodes of Nonemployment

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  • Gritz, R Mark
  • MaCurdy, Thomas

Abstract

This paper examines the influence of unemployment insurance (UI) on the length of nonemployment spells experienced by young workers. The analysis introduces a flexible duration model to estimate the effects of the weekly benefit amount and weeks of eligibility on the amount of time spent between jobs by men, distinguishing between the experiences of UI and non-UI recipients the empirical findings suggest three conclusions: (1) UI recipients experience longer spells of nonemployment than their non-UI recipient counterparts, at least up to the point of exhaustion of UI benefits; (2) the level of the weekly benefit amount does not significantly affect the length of nonemployment spells; and (3) increasing the number of weeks of eligibility offered by a UI program leads to longer episodes of nonemployment.

Suggested Citation

  • Gritz, R Mark & MaCurdy, Thomas, 1992. "Unemployment Compensation and Episodes of Nonemployment," Empirical Economics, Springer, vol. 17(1), pages 183-204.
    • Handle: RePEc:spr:empeco:v:17:y:1992:i:1:p:183-204
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    Cited by:

    1. Picchio, Matteo & Mussida, Chiara, 2011. "Gender wage gap: A semi-parametric approach with sample selection correction," Labour Economics, Elsevier, vol. 18(5), pages 564-578, October.
    2. Marta C. Lopes, 2022. "A review on the elasticity of unemployment duration to the potential duration of unemployment benefits," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1212-1224, September.
    3. Stephen Whelan, 2010. "The Interaction between Income Support Programs," LABOUR, CEIS, vol. 24(4), pages 407-440, December.
    4. Stephen Donald & David Green & Harry Paarsch, "undated". "Differences in Earnings and Wage Distributions between Canada and the United States: An Application of a Semi-Parametric Estimator of Distribution Functions with Covariates," Working Papers _003, University of California at Berkeley, Econometrics Laboratory Software Archive.

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