Arbeitspapier
Assessing the Welfare Effects of Unemployment Benefits Using the Regression Kink Design
I investigate in this paper partial equilibrium labor supply responses to unemployment insurance (UI) in the US. I use administrative data on the universe of unemployment spells in five states from the late 1970s to 1984, and non-parametrically identify the effect of both benefit level and potential duration in the regression kink (RK) design using kinks in the schedule of UI benefits. I provide many tests for the robustness of the RK design, and demonstrate its validity to overcome the traditional issue of endogeneity in UI benefit variations on US data. I also show how, in the tradition of the dynamic labor supply literature, one can identify the purely distortionary effects of UI using variations along the returns-to-employment profile brought about by exogenous variations in the benefit level as well as in the benefit duration. I then use these estimates to calibrate the welfare effects of an increase in UI benefit level and in UI potential duration.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 7589
- Klassifikation
-
Wirtschaft
Time Allocation and Labor Supply
- Thema
-
unemployment insurance
regression kink design
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Landais, Camille
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Landais, Camille
- Institute for the Study of Labor (IZA)
Entstanden
- 2013
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