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Evaluating Pooled Evidence from the Reemployment Bonus Experiments

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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.
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Suggested Citation

  • Paul T. Decker & Christopher J. O'Leary, "undated". "Evaluating Pooled Evidence from the Reemployment Bonus Experiments," Upjohn Working Papers ptdcjo1995, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:ptdcjo1995
    Note: Appears in Journal of Human Resources 30(3): 534-550
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    File URL: http://www.jstor.org/stable/146034
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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. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
    3. repec:mpr:mprres:856 is not listed on IDEAS
    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.
    5. repec:mpr:mprres:1134 is not listed on IDEAS
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    More about this item

    Keywords

    unemployment insurance; bonus experiments; ui;
    All these keywords.

    JEL classification:

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

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