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Disemployment Effects of Unemployment Insurance: A Meta-Analysis

Author

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  • Jonathan P. Cohen
  • Peter Ganong

Abstract

We systematically review studies of how unemployment benefits affect unemployment duration. Statistically significant findings are eight times more likely to be published. Correcting for publication bias cuts the average elasticity by a third. Meta-analysis is a data-driven way to aggregate estimates across policy contexts and generalize sufficient statistics methods to compute the global optimal policy. Although existing consumption drop-based approaches typically imply an optimal replacement rate near zero, our corrected estimates imply an optimal replacement rate of 28% in the US. We are unable to reject the hypothesis that the “micro” elasticity is equal to the “macro” elasticity.

Suggested Citation

  • Jonathan P. Cohen & Peter Ganong, 2024. "Disemployment Effects of Unemployment Insurance: A Meta-Analysis," NBER Working Papers 32832, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32832
    Note: LS ME PE
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    References listed on IDEAS

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    Cited by:

    1. Jonathan Cohen & Geoffrey C. Schnorr, 2024. "Efficiency Costs of Unemployment Insurance Denial: Evidence from Randomly Assigned Examiners," Upjohn Working Papers 24-404, W.E. Upjohn Institute for Employment Research.
    2. Gustavo de Souza & André Victor D. Luduvice, 2026. "Optimal Unemployment Insurance Requirements," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 67(2), pages 433-449, May.
    3. Ricardo Alonzo Fernandez Salguero, 2025. "Integrated analysis of informality, minimum wage, and monopsony power: A synthesis of meta-analyses with unified theoretical underpinnings," Papers 2509.20465, arXiv.org.

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    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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    1. Meta-Research in Economics

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