Does Extending Unemployment Benefits Improve Job Quality?

Andrea Weber, Arash Nekoei

Publikation: Wissenschaftliche FachzeitschriftOriginalbeitrag in FachzeitschriftBegutachtung

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.
OriginalspracheEnglisch
Seiten (von - bis)527 - 561
FachzeitschriftAmerican Economic Review
Jahrgang107
Ausgabenummer2
DOIs
PublikationsstatusVeröffentlicht - 2017

Österreichische Systematik der Wissenschaftszweige (ÖFOS)

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