Weber, Andrea, Nekoei, Arash. 2017. Does Extending Unemployment Benefits Improve Job Quality? American Economic Review 107 (2), 527-561.
BibTeX
Abstract
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.
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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 |
DOI | http://dx.doi.org/10.1257/aer.20150528 |
Associations
- People
- Weber, Andrea (Details)
- External
- Nekoei, Arash (IIES University of Stockholm, Sweden)
- Organization
- 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)