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Expectations of Unemployment Insurance and Unemployment Duration

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  • Rogers, Cynthia L

Abstract

Over the years there have been frequent changes in unemployment insurance benefits. Such changes could influence spells in progress as well as future spells. If individuals anticipate changes, they are likely to adjust their behavior. The effect of changes in benefits on unemployment duration, therefore, will be difficult to predict accurately without accounting for individual expectations. This article investigates the extent to which individuals anticipate changes in unemployment insurance entitlement. The results suggest that individuals have significant, although not perfect, foresight about changes in unemployment insurance provisions. Assuming perfect foresight might represent actual expectations more closely than assuming no foresight. Copyright 1998 by University of Chicago Press.

Suggested Citation

  • Rogers, Cynthia L, 1998. "Expectations of Unemployment Insurance and Unemployment Duration," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 630-666, July.
  • Handle: RePEc:ucp:jlabec:v:16:y:1998:i:3:p:630-66
    DOI: 10.1086/209901
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    References listed on IDEAS

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    1. Grossman, Jean Baldwin, 1989. "The Work Disincentive Effect of Extended Unemployment Compensation: Recent Evidence," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 159-164, February.
    2. Anderson, Patricia M, 1992. "Time-Varying Effects of Recall Expectation, a Reemployment Bonus, and Job Counseling on Unemployment Durations," Journal of Labor Economics, University of Chicago Press, vol. 10(1), pages 99-115, January.
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    Cited by:

    1. Lars Pico Geerdsen & Stéphanie Vincent Lyk-Jensen & Cecilie Dohlmann Weatherall, 2018. "Accelerating the transition to employment at benefit exhaustion: still possible after four years of unemployment?," Empirical Economics, Springer, vol. 54(3), pages 1107-1135, May.
    2. repec:mpr:mprres:2823 is not listed on IDEAS
    3. Timothy Page, 2011. "Labor supply responses to government subsidized health insurance: evidence from kidney transplant patients," International Journal of Health Economics and Management, Springer, vol. 11(2), pages 133-144, June.
    4. Jurajda, Stepan, 2002. "Estimating the effect of unemployment insurance compensation on the labor market histories of displaced workers," Journal of Econometrics, Elsevier, vol. 108(2), pages 227-252, June.
    5. Katherine Baicker & Marit M. Rehavi, 2004. "Policy Watch: Trade Adjustment Assistance," Journal of Economic Perspectives, American Economic Association, vol. 18(2), pages 239-255, Spring.
    6. Karen E. Needels & Walter Nicholson, 1999. "An Analysis of Unemployment Insurance Durations Since the 1990-1992 Recession," Mathematica Policy Research Reports 555a1aa8ba144125ae9c715fe, Mathematica Policy Research.
    7. Geerdsen, Lars Pico & Holm, Anders, 2007. "Duration of UI periods and the perceived threat effect from labour market programmes," Labour Economics, Elsevier, vol. 14(3), pages 639-652, June.

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