Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93584
Authors: 
Hagedorn, Marcus
Karahan, Fatih
Manovskii, Iourii
Mitman, Kurt
Year of Publication: 
2013
Series/Report no.: 
Staff Report, Federal Reserve Bank of New York 646
Abstract: 
We exploit a policy discontinuity at U.S. state borders to identify the effects of unemployment insurance policies on unemployment. Our estimates imply that most of the persistent increase in unemployment during the Great Recession can be accounted for by the unprecedented extensions of unemployment benefit eligibility. In contrast to the existing recent literature that mainly focused on estimating the effects of benefit duration on job search and acceptance strategies of the unemployed - the micro effect - we focus on measuring the general equilibrium macro effect that operates primarily through the response of job creation to unemployment benefit extensions. We find that it is the latter effect that is very important quantitatively.
Subjects: 
unemployment insurance
unemployment
employment
vacancies
wages
search
matching
JEL: 
E24
J63
J64
J65
Document Type: 
Working Paper

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