The Match Quality Gains from Unemployment Insurance
This paper assesses the benefits of unemployment insurance (UI) by measuring its effect in match quality. We note that UI generosity should affect the decision to match or not and should therefore have some effect on match quality. Using NLSY data, we analyze the relationship between postunemployment job tenure and measures of the state-level UI generosity and the unemployment rate at the time the job is started. We show that greater UI generosity leads to longer job tenure. Furthermore, we find some evidence that this effect is more pronounced during busts, UI having a limited dampening effect on the cyclical variation in match quality.
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- Barlevy, Gadi, 2001. "Why Are the Wages of Job Changers So Procyclical?," Journal of Labor Economics, University of Chicago Press, vol. 19(4), pages 837-878, October.
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- Phillip B. Levine, 1993.
"Spillover Effects between the Insured and Uninsured Unemployed,"
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- Pedro Portugal & John T. Addison, 1990. "Problems of Sample Construction in Studies of the Effects of Unemployment Insurance on Unemployment Duration," ILR Review, Cornell University, ILR School, vol. 43(4), pages 463-477, July.
- Addison, John T. & Blackburn, McKinley L., 2000. "The effects of unemployment insurance on postunemployment earnings," Labour Economics, Elsevier, vol. 7(1), pages 21-53, January.
- Belzil, Christian, 1995. "Unemployment Insurance and Unemployment over Time: An Analysis with Event History Data," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 113-126, February.
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