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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

    as
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