Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210757 
Year of Publication: 
2019
Series/Report no.: 
Staff Report No. 905
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
We develop a method to jointly measure the response of worker search effort (individual effect) and vacancy creation (market-level effect) to changes in the duration of unemployment insurance (UI) benefits. To implement this approach, we exploit an unexpected cut in UI durations in Missouri and provide quasi-experimental evidence on the effect of UI on the labor market. The data indicate that the cut in Missouri significantly increased job finding rates by both raising the search effort of unemployed workers and the availability of jobs. The latter accounts for at least a third and up to 100 percent of the total effect.
Subjects: 
unemployment insurance
unemployment
vacancies
search
JEL: 
E24
J63
J64
J65
Document Type: 
Working Paper

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