Unemployment Insurance and Labor Force Transitions

71 Pages Posted: 19 Mar 2001 Last revised: 9 Jul 2010

See all articles by Kim B. Clark

Kim B. Clark

Harvard Business School; National Bureau of Economic Research (NBER); Brigham Young University Idaho

Lawrence H. Summers

Harvard University; National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Date Written: June 1982

Abstract

This paper reports preliminary estimates of an econometric simulation model capable of a comprehensive evaluation of the effects of unemployment insurance on measured and actual employment, unemployment and non-participation. The data are longitudinal comprising information on 75,000 households sampled in the Current Population Surveys of March and April 1978. The simulation model is constructed from multi- nomial logit equations characterizing individuals' labor force transitions. These equations provide estimates of the effects of UI on job loss, labor force exit, and entry into the labor force, as well as the effect of UI on unemployment duration and temporary layoffs. The results are rather inconclusive, but suggest the importance of further research on I21 and transitions in and out of the labor force.

Suggested Citation

Clark, Kim and Summers, Lawrence H., Unemployment Insurance and Labor Force Transitions (June 1982). NBER Working Paper No. w0920. Available at SSRN: https://ssrn.com/abstract=228079

Kim Clark (Contact Author)

Harvard Business School ( email )

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National Bureau of Economic Research (NBER)

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Brigham Young University Idaho

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Lawrence H. Summers

Harvard University ( email )

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National Bureau of Economic Research (NBER)

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Harvard University - Harvard Kennedy School (HKS) ( email )

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United States

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