Arbeitspapier
Does Extending Unemployment Benefits Improve Job Quality?
Contrary to standard search model predictions, prior studies failed to estimate a positive effect of unemployment insurance (UI) on reemployment wages. This paper estimates a positive UI wage effect exploiting an age-based regression discontinuity in Austrian administrative data. A search model incorporating duration dependence determines the UI wage effect as the balance between two offsetting forces: UI causes agents to seek higher-wage jobs, but also reduces wages by lengthening unemployment. This implies a negative relationship between the UI unemployment duration and wage effects, which holds empirically both in our sample and across studies, reconciling disparate wage-effect estimates. Empirically, UI raises wages by improving reemployment firms' quality and attenuating wage drops.
- Sprache
-
Englisch
- Erschienen in
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Series: IZA Discussion Papers ; No. 9034
- Klassifikation
-
Wirtschaft
- Thema
-
unemployment insurance
job-search
wages
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Nekoei, Arash
Weber, Andrea
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Nekoei, Arash
- Weber, Andrea
- Institute for the Study of Labor (IZA)
Entstanden
- 2015