Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180514 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11496
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We document two potential biases in recent analyses of UI benefit extensions using boundary-based identification: from using county-level aggregates and from across-border policy spillovers. To examine the first bias, we use a regression discontinuity (RD) approach that accounts for measurement error in county-level aggregates. Our results suggest much smaller effects than previous studies, casting doubt on the applicability of border-based designs. We then document substantial spillover effects of UI benefit duration in the form of across-border work patterns that are consistent with increased tightness in high benefit states, providing evidence against a dominant vacancy reduction response to UI extensions.
Subjects: 
unemployment insurance
great recession
geographic regression discontinuity
policy spillover
JEL: 
J61
J65
Document Type: 
Working Paper

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