Cookies?
Library Header Image
LSE Research Online LSE Library Services

Unemployment dynamics and endogenous unemployment insurance extensions

Rujiwattanapong, W. Similan (2019) Unemployment dynamics and endogenous unemployment insurance extensions. CFM discussion paper series (CFM-DP2019-09). Centre For Macroeconomics, London School of Economics and Political Science, London, UK.

[img] Text (CFMDP2019-09-Paper) - Published Version
Download (845kB)

Abstract

This paper investigates the impact of endogenous unemployment insurance (UI) extensions on the dynamics of unemployment and its duration structure in the US. Using a search and matching model with worker heterogeneity, I allow for the maximum UI duration to depend on unemployment and for UI benefits to depend on worker characteristics. UI extensions have a large effect on long-term unemployment during the Great Recession via job search responses and a moderate effect on total unemployment via job separations. Disregarding rational expectations about the timing of UI extensions implies an overestimation of the unemployment rate by over 2 percentage points.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.centreformacroeconomics.ac.uk/Home.aspx
Additional Information: © 2019 The Author
Divisions: Centre for Macroeconomics
Subjects: H Social Sciences > HD Industries. Land use. Labor
JEL classification: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E24 - Macroeconomics: Employment; Unemployment; Wages; Intergenerational Income Distribution (includes wage indexation)
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search
J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J65 - Unemployment Insurance; Severance Pay; Plant Closings
Date Deposited: 04 Jun 2019 15:12
Last Modified: 22 Jan 2020 00:44
URI: http://eprints.lse.ac.uk/id/eprint/100948

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics