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What Have We Learned from the Illinois Reemployment Bonus Experiment?

  • Meyer, Bruce D

This article analyzes an experimental program that offered payments to unemployment insurance recipients who found a job quickly. The experiment provided exogenous differences in individual incentives, which the author uses to test labor supply and search theories of unemployment. He examines predictions about the timing of exits from unemployment and the effect of the fixed-amount bonus on different wage level groups. The author also argues that the experimental evidence does not show the desirability of a permanent program. A permanent program would sharply increase the compensation for short unemployment insurance spells, likely increasing the claims rate and possibly increasing unemployment. Copyright 1996 by University of Chicago Press.

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File URL: http://dx.doi.org/10.1086/209802
File Function: full text
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 14 (1996)
Issue (Month): 1 (January)
Pages: 26-51

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Handle: RePEc:ucp:jlabec:v:14:y:1996:i:1:p:26-51
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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  1. Topel, Robert H, 1983. "On Layoffs and Unemployment Insurance," American Economic Review, American Economic Association, vol. 73(4), pages 541-59, September.
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  4. Rebecca M. Blank & David Card, 1989. "Recent Trends in Insured and Uninsured Unemployment: Is There an Explanation?," NBER Working Papers 2871, National Bureau of Economic Research, Inc.
  5. Sider, Hal, 1985. "Unemployment Duration and Incidence: 1968-82," American Economic Review, American Economic Association, vol. 75(3), pages 461-72, June.
  6. Lawrence F. Katz & Bruce D. Meyer, 1990. "Unemployment Insurance, Recall Expectations, and Unemployment Outcomes," The Quarterly Journal of Economics, Oxford University Press, vol. 105(4), pages 973-1002.
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  13. N/A, 1980. "Chapter III. The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 94(1), pages 47-61, November.
  14. N/A, 1980. "Chapter II. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 91(1), pages 27-42, February.
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  16. Bruce Meyer, 1988. "Implications of the Illinois Reemployment Bonus Experiments for Theories of Unemployment and Policy Design," Working Papers 622, Princeton University, Department of Economics, Industrial Relations Section..
  17. Patricia M. Anderson & Bruce D. Meyer, 1994. "Unemployment Insurance Benefits and Takeup Rates," NBER Working Papers 4787, National Bureau of Economic Research, Inc.
  18. Lawrence F. Katz, 1986. "Layoffs, Recall and the Duration of Unemployment," NBER Working Papers 1825, National Bureau of Economic Research, Inc.
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  22. Anonymous, 1980. "The Biologic and Economic Assessment of Endrin," Technical Bulletins 157728, United States Department of Agriculture, Economic Research Service.
  23. David M. Blau, 1992. "An Empirical Analysis of Employed and Unemployed Job Search Behavior," ILR Review, Cornell University, ILR School, vol. 45(4), pages 738-752, July.
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  27. Latsis,, 1980. "Method and Appraisal in Economics," Cambridge Books, Cambridge University Press, number 9780521280501, Junio.
  28. Havlicek, Joseph Jr., 1980. "Lecture notes in econometric methods and analysis," Honorary Collections, Joseph Havlicek, Jr., AgEcon Search, number 207771.
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  31. Hausman, Jerry A. & Wise, David A. (ed.), 1985. "Social Experimentation," National Bureau of Economic Research Books, University of Chicago Press, edition 0, number 9780226319407.
  32. Bruce D. Meyer, 1988. "Implications of the Illinois Reemployment Bonus Experiments For Theories of Unemployment and Policy Design," NBER Working Papers 2783, National Bureau of Economic Research, Inc.
  33. N/A, 1980. "Calendar of Economic Events April—June 1980," National Institute Economic Review, National Institute of Economic and Social Research, vol. 93(1), pages 80-82, August.
  34. anonymous, 1980. "The New Zealand economy - six monthly review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 43, may.
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