Starjournal Quotation Weber, Andrea, Nekoei, Arash. 2017. Does Extending Unemployment Benefits Improve Job Quality? American Economic Review 107 (2), 527-561.




Contrary to standard search models predictions, past studies have not found a positive effect of unemployment insurance (UI) on reemployment wages. We estimate a positive UI wage effect exploiting an age-based regression discontinuity design in Austria. A search model incorporating duration dependence predicts two countervailing forces: UI induces workers to seek higher-wage jobs, but reduces wages by lengthening unemployment. Matching-function heterogeneity plausibly generates a negative relationship between the UI unemployment-duration and wage effects, which holds empirically in our sample and across studies, reconciling disparate wage-effect estimates. Empirically, UI raises wages by improving reemployment firm quality and attenuating wage drops.


Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal American Economic Review
Citation Index SSCI
WU Journalrating 2009 A+
Starjournal Y
Language English
Title Does Extending Unemployment Benefits Improve Job Quality?
Volume 107
Number 2
Year 2017
Page from 527
Page to 561
Reviewed? Y


Weber, Andrea (Details)
Nekoei, Arash (IIES University of Stockholm, Sweden)
Department of Economics (Kartal) (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5304 Labour market research (Details)
5902 Labour market research (Details)
5903 Labour market policy (Details)
Google Scholar: Search