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
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Englisch
- Erschienen in
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Series: NRN Working Paper, NRN: The Austrian Center for Labor Economics and the Analysis of the Welfare State ; No. 1404
- Klassifikation
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Wirtschaft
- Ereignis
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Geistige Schöpfung
- (wer)
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Nekoei, Arash
Weber, Andrea
- Ereignis
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Veröffentlichung
- (wer)
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Johannes Kepler University Linz, NRN - The Austrian Center for Labor Economics and the Analysis of the Welfare State
- (wo)
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Linz
- (wann)
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2014
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Nekoei, Arash
- Weber, Andrea
- Johannes Kepler University Linz, NRN - The Austrian Center for Labor Economics and the Analysis of the Welfare State
Entstanden
- 2014