Expectations of Unemployment Insurance and Unemployment Duration
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.
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- van den Berg, Gerard J, 1994. "The Effects of Changes of the Job Offer Arrival Rate on the Duration of Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 478-498, July.
- Ham, John C & Rea, Samuel A, Jr, 1987.
"Unemployment Insurance and Male Unemployment Duration in Canada,"
Journal of Labor Economics,
University of Chicago Press, vol. 5(3), pages 325-353, July.
- John C. Ham & Samuel A. Rea, 1986. "Unemployment Insurance and Male Unemployment Duration in Canada," Working Papers 592, Princeton University, Department of Economics, Industrial Relations Section..
- Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
- Mortensen, Dale T, 1970. "Job Search, the Duration of Unemployment, and the Phillips Curve," American Economic Review, American Economic Association, vol. 60(5), pages 847-862, December.
- 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. Full references (including those not matched with items on IDEAS)
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