Lalive, Rafael, Landais, Camille and Zweimüller, Josef (2015) Market externalities of large unemployment insurance extension programs. American Economic Review , 105 (12). pp. 3564-3596. ISSN 0002-8282
|
PDF
- Accepted Version
Download (2728Kb) | Preview |
Abstract
We provide evidence that unemployment insurance affects equilibrium conditions in the labor market, which creates significant market externalities. We provide a framework for identification of such equilibrium effects and implement it using the Regional Extension Benefit Program in Austria which extended the duration of UI benefits for a large group of eligible workers in selected regions of Austria. We show that non-eligible workers in REBP regions have higher job finding rates, lower unemployment durations, and a lower risk of long-term unemployment. We discuss the implications of our results for optimal UI policy.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.vanderbilt.edu/AEA/ |
| Additional Information: | © 2015 American Economic Association |
| Library of Congress subject classification: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HV Social pathology. Social and public welfare. Criminology |
| Journal of Economic Literature Classification System: | H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J64 - Unemployment: Models, Duration, Incidence, and Job Search |
| Sets: | Departments > Economics |
| Date Deposited: | 01 Dec 2015 16:55 |
| URL: | http://eprints.lse.ac.uk/64566/ |
Actions (login required)
 |
Record administration - authorised staff only |
Download statistics
Download statistics