Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/172423 
Year of Publication: 
2003
Series/Report no.: 
Upjohn Institute Working Paper No. 03-51R
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
Targeting reemployment bonus offers to unemployment insurance (UI) claimants identified as most likely to exhaust benefits is estimated to reduce benefit payments. While earlier research indicated that non-targeted reemployment bonus offers would not be good public policy, in this paper we show that targeting bonus offers with profiling models similar to those in state Worker Profiling and Reemployment Services (WPRS) systems can improve their cost effectiveness. Since estimated average benefit payments do not steadily decline as the eligibility screen is gradually tightened, we find that narrow targeting is not optimal. The best candidate to emerge for a targeted reemployment bonus is a low bonus amount with a long qualification period, targeted to the half of profiled claimants most likely to exhaust their UI benefit entitlement.
Subjects: 
reemployment
bonus
UI
personal
accounts
PRA
unemployment
insurance
O'Leary
Decker
Wandner
JEL: 
J65
J68
H55
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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