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Evaluating Pooled Evidence from the Reemployment Bonus Experiments

Author

Listed:
  • Paul T. Decker

    (Mathematica Policy Research)

  • Christopher J. O'Leary

    () (W.E. Upjohn Institute for Employment Research)

Abstract

Social experiments conducted in Pennsylvania and Washington tested the effect of offering Unemployment Insurance (UI) claimants a cash bonus for rapid reemployment. This paper combines data from the two experiments and uses a consistent framework to evaluate the experiments and determine with greater certainty the extent to which a reemployment bonus can affect economic outcomes. Bonus offers in each of the experiments generated statistically significant but relatively modest reductions in UI receipt. Since the estimated impacts on UI receipt were modest, the reemployment bonuses did not generate the UI savings necessary to pay for administering and paying the bonuses. Hence, contrary to earlier findings from a bonus experiment conducted in Illinois, findings from the Pennsylvania and Washington experiments strongly suggest that a reemployment bonus is not a cost-effective method of speeding the reemployment of UI claimants.

Suggested Citation

  • Paul T. Decker & Christopher J. O'Leary, 1994. "Evaluating Pooled Evidence from the Reemployment Bonus Experiments," Upjohn Working Papers and Journal Articles 94-28, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:94-28
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    References listed on IDEAS

    as
    1. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
    2. repec:mpr:mprres:1134 is not listed on IDEAS
    3. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
    4. Paul T. Decker & Christopher J. O'Leary, 1991. "An Analysis of Pooled Evidence from the Pennsylvania and Washington Reemployment Bonus Demonstrations," Mathematica Policy Research Reports 458eec364eac40c390e6d78c9, Mathematica Policy Research.
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    Citations

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    Cited by:

    1. van der Klaauw, Bas & van Ours, Jan C., 2010. "Carrot and Stick: How Reemployment Bonuses and Benefit Sanctions Affect Job Finding Rates," IZA Discussion Papers 5055, Institute for the Study of Labor (IZA).
    2. Christopher J. O'Leary & Stephen A. Wandner, 2001. "Unemployment Compensation and Older Workers," Book chapters authored by Upjohn Institute researchers, W.E. Upjohn Institute for Employment Research.
    3. Christopher J. O'Leary & Stephen A. Wandner, 1997. "Summing Up: Achievements, Problems, and Prospects," Book chapters authored by Upjohn Institute researchers,in: Christopher J. O'Leary & Stephen A. Wandner (ed.), Unemployment Insurance in the United States: Analysis of Policy Issues, chapter 15, pages 669-722 W.E. Upjohn Institute for Employment Research.
    4. Christopher J. O'Leary & Paul T. Decker & Stephen A. Wandner, 2002. "Targeting Reemployment Bonuses," Book chapters authored by Upjohn Institute researchers,in: Stephen A. Wandner & Randall W. Eberts & Christopher J. O'Leary (ed.), Targeting Employment Services, chapter 6, pages 161-182 W.E. Upjohn Institute for Employment Research.
    5. repec:mpr:mprres:2823 is not listed on IDEAS
    6. Knoef, M.G. & van Ours, J.C., 2014. "How to Stimulate Single Mothers on Welfare to Find a Job : Evidence from a Natural Experiment," Discussion Paper 2014-030, Tilburg University, Center for Economic Research.
    7. Christopher J. O’Leary & Paul T. Decke & Stephen A. Wandner, 2005. "Cost-Effectiveness of Targeted Reemployment Bonuses," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    8. Paul T. Decker, "undated". "The Effect of Unemployment Compensation on the Reemployment of Recipients," Mathematica Policy Research Reports d77ba5d2dc13414180ee558c9, Mathematica Policy Research.
    9. Gary Burtless, 2002. "Can Supply-Side policies Reduce unemployment? Lessons from North America," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 5(2), pages 115-142, June.
    10. Christopher J. O'Leary, 1999. "Promoting Self Employment Among the Unemployed in Hungary and Poland," Upjohn Working Papers and Journal Articles 99-55, W.E. Upjohn Institute for Employment Research.
    11. Hyun Kim & Yong-seong Kim & Myoung-jae Lee, 2012. "Treatment effect analysis of early reemployment bonus program: panel MLE and mode-based semiparametric estimator for interval truncation," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 11(3), pages 189-209, December.
    12. Marike Knoef & Jan C. van Ours, 2016. "How to stimulate single mothers on welfare to find a job: evidence from a policy experiment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 1025-1061, October.
    13. repec:mpr:mprres:3520 is not listed on IDEAS
    14. Kletzer, Lori, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Center for International Economics, Working Paper Series qt27w182ht, Center for International Economics, UC Santa Cruz.
    15. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 1999. "Is the Threat of Training More Effective Than Training Itself? Experimental Evidence from the UI System," UWO Department of Economics Working Papers 9913, University of Western Ontario, Department of Economics.
    16. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2002. "Is the Threat of Reemployment Services More Effective than the Services Themselves? Experimental Evidence from the UI System," NBER Working Papers 8825, National Bureau of Economic Research, Inc.
    17. Yosuke Oda, 2008. "Alteration in Skills and Career-Enhancing in a Frictional Labor Market," Discussion Papers in Economics and Business 08-09, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    18. Christopher J. O'Leary, 2004. "Evaluating the Effectiveness of Labor Exchange Services," Book chapters authored by Upjohn Institute researchers, W.E. Upjohn Institute for Employment Research.
    19. repec:mpr:mprres:3507 is not listed on IDEAS
    20. Christopher J. O'Leary, 2017. "Evaluating Public Employment Programs with Field Experiments: A Survey of American Evidence," Upjohn Working Papers and Journal Articles 17-279, W.E. Upjohn Institute for Employment Research.
    21. Karen E. Needels & Walter Nicholson, 1999. "An Analysis of Unemployment Insurance Durations Since the 1990-1992 Recession," Mathematica Policy Research Reports 555a1aa8ba144125ae9c715fe, Mathematica Policy Research.
    22. Kletzer, Lori, 2003. "Trade-related Job Loss and Wage Insurance: A Synthetic Review," Santa Cruz Department of Economics, Working Paper Series qt27w182ht, Department of Economics, UC Santa Cruz.

    More about this item

    Keywords

    unemployment; insurance; bonus; experiments; O'Leary; Decker;

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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