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Revisiting the Effects of Unemployment Insurance Extensions on Unemployment: A Measurement Error-Corrected RD Approach

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  • Dieterle, Steven
  • Bartalotti, Otávio C.
  • Brummet, Quentin O.

Abstract

We reassess the literature using county border pair identification strategies to examine the effects of UI benefit duration on labor market conditions. We extend these previous approaches using a regression discontinuity-based approach that controls for changes in unobservables by distance to the border and accounts for measurement error induced by using county-level aggregates. Our new results provide no evidence of a large change in unemployment induced by differences in UI generosity across state boundaries, bringing the evidence from border-based identification strategies in line with estimates from other strands of the UI benefit duration literature.

Suggested Citation

  • Dieterle, Steven & Bartalotti, Otávio C. & Brummet, Quentin O., 2016. "Revisiting the Effects of Unemployment Insurance Extensions on Unemployment: A Measurement Error-Corrected RD Approach," Staff General Research Papers Archive 3392, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:3392
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    References listed on IDEAS

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    Cited by:

    1. Andrew Figura & David Ratner, 2017. "How Large were the Effects of Emergency and Extended Benefits on Unemployment during the Great Recession and its Aftermath?," Finance and Economics Discussion Series 2017-068, Board of Governors of the Federal Reserve System (U.S.).
    2. Bartalotti, Otávio & Brummet, Quentin & Dieterle, Steven, 2019. "A Correction for Regression Discontinuity Designs with Group-Specific Mismeasurement of the Running Variable," ISU General Staff Papers 201905170700001045, Iowa State University, Department of Economics.

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