The Consumption Smoothing Benefits of Unemployment Insurance

@article{Gruber1994TheCS,
  title={The Consumption Smoothing Benefits of Unemployment Insurance},
  author={Jonathan H Gruber},
  journal={NBER Working Paper Series},
  year={1994}
}
  • J. Gruber
  • Published 1994
  • Economics
  • NBER Working Paper Series
Previous research on unemployment insurance (UI) has focused on the costs of the program, in terms of the distorting effects of generous UI benefits on worker and firm behavior. For assessing the optimal size of an unemployment insurance program, however, it is also important to gauge the benefits of increased UI generosity, in terms of smoothing consumption across periods of joblessness. I do so through a reduced form approach which directly measures the effect of legislated variations in UI… Expand
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This paper uses two data sets to examine the impact of the potential duration of unemployment insurance (UI) benefits on the duration of unemployment and the time pattern of the escape rate fromExpand
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Previous studies of optimal unemployment insurance (UI) design ignore the impact of UI on human capital investment decisions. We show that fully experience-rated UI increases investment in humanExpand
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This paper examines the effect of changing the level of unemployment insurance (UI) benefits on workers who do not receive UI. The author hypothesizes a spillover effect between insured and uninsuredExpand
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