Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/172379 
Year of Publication: 
1996
Series/Report no.: 
Upjohn Institute Working Paper No. 96-44
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
We translate the results of the three reemployment bonus experiments that were conducted during the 1980s into (a) impacts of a 10-percentage point increase in the Unemployment Insurance (UI) replacement rate on the expected duration of unemployment; and (b) impacts of adding 1 week to the potential duration of UI benefits on the expected duration of unemployment. Our approach is to use an equilibrium search and matching model, calibrated using data from the bonus experiments and secondary sources. The results suggest that a 10-percentage point increase in the UI replacement rate increases the expected duration of unemployment by .3 to 1.1 week (a range consistent with, but only somewhat narrower than, the existing range of estimates), and that adding 1 week to the potential duration of UI benefits increases the expected duration of unemployment by .05 to .2 week (which is toward the low end of existing estimates).
Subjects: 
unemployment
insurance
bonus
experiments
Davidson
Woodbury
JEL: 
J0
J6
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
120.62 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.