Does Extending Unemployment Benefits Improve Job Quality?

@article{Nekoei2015DoesEU,
  title={Does Extending Unemployment Benefits Improve Job Quality?},
  author={Arash Nekoei and Andrea Maria Weber},
  journal={Macroeconomics: Employment},
  year={2015}
}
Contrary to standard search model predictions, prior studies failed to estimate a positive effect of unemployment insurance (UI) on reemployment wages. This paper estimates a positive UI wage effect exploiting an age-based regression discontinuity in Austrian administrative data. A search model incorporating duration dependence determines the UI wage effect as the balance between two offsetting forces: UI causes agents to seek higher-wage jobs, but also reduces wages by lengthening unemployment… Expand
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The Causal Effect of Unemployment Duration on Wages: Evidence from Unemployment Insurance Extensions
This paper estimates the causal effect of long-term unemployment on wages. Job search theory implies that if Unemployment Insurance (UI) extensions do not affect wages conditional on the month ofExpand
The Effect of Unemployment Benefits and Nonemployment Durations on Wages
We estimate that unemployment insurance (UI ) extensions reduce reemployment wages using sharp age discontinuities in UI eligibility in Germany. We show this effect combines two key policyExpand
The General Equilibrium Impacts of Unemployment Insurance: Evidence from a Large Online Job Board
During the Great Recession, U.S. unemployment benefits were extended by up to 73 weeks. Theory predicts that extensions increase unemployment by discouraging job search, a partial equilibrium effect.Expand
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