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

Author

Listed:
  • Dieterle, Steven G.

    () (University of Edinburgh)

  • Bartalotti, Otávio

    () (Iowa State University)

  • Brummet, Quentin

    () (NORC at the University of Chicago)

Abstract

We document two potential biases in recent analyses of UI benefit extensions using boundary-based identification: from using county-level aggregates and from across-border policy spillovers. To examine the first bias, we use a regression discontinuity (RD) approach that accounts for measurement error in county-level aggregates. Our results suggest much smaller effects than previous studies, casting doubt on the applicability of border-based designs. We then document substantial spillover effects of UI benefit duration in the form of across-border work patterns that are consistent with increased tightness in high benefit states, providing evidence against a dominant vacancy reduction response to UI extensions.

Suggested Citation

  • Dieterle, Steven G. & Bartalotti, Otávio & Brummet, Quentin, 2018. "Revisiting the Effects of Unemployment Insurance Extensions on Unemployment: A Measurement Error-Corrected Regression Discontinuity Approach," IZA Discussion Papers 11496, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11496
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    References listed on IDEAS

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    Cited by:

    1. Gabriel Chodorow-Reich & Loukas Karabarbounis, 2016. "The Limited Macroeconomic Effects of Unemployment Benefit Extensions," NBER Working Papers 22163, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    unemployment insurance; great recession; geographic regression discontinuity; policy spillover;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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