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The Effect of Unemployment Benefits on the Duration of Unemployment Insurance Receipt: New Evidence from a Regression Kink Design in Missouri, 2003-2013

by Mas, Alexandre , Johnston, Andrew , Pei, Zhuan , Card, David , Leung, Pauline

in Academic libraries / Bandwidths / Censorship / Datasets / Economic analysis / Economic conditions / Economic models / Economic recessions / Economic theory / Elasticity of demand / Estimates / Great Recession / Insurance / Manufacturing / Missouri / Public assistance programs / Quasi-experimental methods / Recession / Recessions / SOCIAL INSURANCE PROGRAMS AND THE LABOR MARKET / Standard error / Studies / U.S.A / Unemployment / Unemployment benefits / Unemployment insurance / Unemployment rates / Working papers

2015

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The Effect of Unemployment Benefits on the Duration of Unemployment Insurance Receipt: New Evidence from a Regression Kink Design in Missouri, 2003-2013

by Mas, Alexandre , Johnston, Andrew , Pei, Zhuan , Card, David , Leung, Pauline

2015

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The Effect of Unemployment Benefits on the Duration of Unemployment Insurance Receipt: New Evidence from a Regression Kink Design in Missouri, 2003-2013

by Mas, Alexandre , Johnston, Andrew , Pei, Zhuan , Card, David , Leung, Pauline

2015

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Journal Article

The Effect of Unemployment Benefits on the Duration of Unemployment Insurance Receipt: New Evidence from a Regression Kink Design in Missouri, 2003-2013

Mas, Alexandre,

Johnston, Andrew,

Pei, Zhuan,

Card, David,

Leung, Pauline

2015

Overview

We provide new evidence on the effect of the unemployment insurance (UI) weekly benefit amount on unemployment insurance spells based on administrative data from the state of Missouri covering the period 2003-2013. Identification comes from a regression kink design that exploits the quasi-experimental variation around the kink in the UI benefit schedule. We find that UI durations are more responsive to benefit levels during the recession and its aftermath, with an elasticity between 0.65 and 0.9 as compared to about 0.35 pre-recession.

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Publisher

American Economic Association,American Economic Assoc

Subject

/ Economic conditions

/ Economic models