Abstract

http://ssrn.com/abstract=425572
 
 

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Unemployment Insurance and Unemployment Spells


Bruce D. Meyer


University of Chicago - Irving B. Harris Graduate School of Public Policy Studies; National Bureau of Economic Research (NBER)

February 1991

NBER Working Paper No. w2546

Abstract:     
This paper tests the effects of the level and length of unemployment insurance (UI) benefits on unemployment durations. The paper particularly studies individual behavior during the weeks just prior to when benefits lapse. Higher UI benefits are found to have a strong negative effect on the probability of leaving unemployment. However, the probability of leaving unemployment rises dramatically just prior to when benefits lapse. When the length of benefits is extended, the probability of a spell ending is also very high in the week benefits were previously expected to lapse. Individual data are used with accurate information on spell durations, and the level and length of benefits. Semiparametric estimation techniques are used and compared to alternative approaches. The semiparametric approach yields more plausible estimates and provides useful diagnostics.

Number of Pages in PDF File: 43

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Date posted: July 5, 2004  

Suggested Citation

Meyer, Bruce D., Unemployment Insurance and Unemployment Spells (February 1991). NBER Working Paper No. w2546. Available at SSRN: http://ssrn.com/abstract=425572

Contact Information

Bruce D. Meyer (Contact Author)
University of Chicago - Irving B. Harris Graduate School of Public Policy Studies ( email )
1155 East 60th Street
Chicago, IL 60637
United States
(773) 702-2712 (Phone)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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