Effects of Unemployment Insurance Work-Search Requirements: The Maryland Experiment

Klepinger, Daniel H.; Johnson, Terry R.; Joesch, Jutta M.

doi:10.2307/3270646

Cited by 40 publications

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“…In contrast to the results of Johnson and Klepinger (1994) and Klepinger et al (2002), their results do not indicate that verification of search behavior caused shorter unemployment spells 3 or lower total UI benefit payments.…”

Section: Introductioncontrasting

confidence: 54%

Seek and Ye Shall Find: How Search Requirements Affect Job Finding Rates of Older Workers

Hullegie

Ours

2013

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Unemployment insurance recipients in the Netherlands were for a long time exempted from the requirement to actively search for a job when they reached the age of 57.5. We study how this exemption affected the job finding rates of the recipients involved. We find evidence that the job finding rate of unemployed workers who were getting close to the age of 57.5 is reduced in anticipation of the removal of the search requirement. In addition we find a large negative effect on job finding rates of the actual removal of the search requirement. Apparently, even for persons with seemingly poor job prospects search requirements have a positive effect on finding rates. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S

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Section: Introductioncontrasting

confidence: 54%

Seek and Ye Shall Find: How Search Requirements Affect Job Finding Rates of Older Workers

Hullegie

Ours

2013

SSRN Journal

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Section: Introductioncontrasting

confidence: 54%

Seek and Ye Shall Find: How Search Requirements Affect Job Finding Rates of Older Workers

Hullegie

Ours

2013

SSRN Journal

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Unemployment insurance recipients in the Netherlands were for a long time exempted from the requirement to actively search for a job when they reached the age of 57.5. We study how this exemption affected the job finding rates of the recipients involved. We find evidence that the job finding rate of unemployed workers who were getting close to the age of 57.5 is reduced in anticipation of the removal of the search requirement.In addition we find a large negative effect on job finding rates of the actual removal of the search requirement. Apparently, even for persons with seemingly poor job prospects search requirements have a positive effect on finding rates.Keywords: eligibility criteria, unemployment benefits, job finding, older workers JEL-codes: C41; H55; J64; J65 * We thank Jaap Abbring, Jonneke Bolhaar, Adriaan Kalwij, Peter Kooreman, Tobias Klein, Maarten Lindeboom, Bas van der Klaauw, and seminar participants at Tilburg University and VU University Amsterdam for helpful comments. The estimates in this paper are based on own calculations using various micro datasets made available through a remote access facility by Statistics Netherlands. We thank Sander Tuit for constructing the dataset we use in our analysis.

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“…These studies are based on field experiments and perform causality analysis distinguishing between treated/non treated groups, trying to assess whether the criteria imposed to be eligible for benefits affect or not search behaviour. The results of the conclusion of these studies are mixed: Klepinger et al (2002) performs a causality analysis using the data Maryland UI work-search demonstration (a plan that randomly assigned benefits recipients to different search criteria) and show that stricter criteria improved search efforts and reduced unemployment duration. Somehow differently, Ashenfelter et al (2005) exploit differences in the eligibility criteria of different American states (Connecticut, Massachusetts, Virginia and Tennessee) to conduct an experiment and finds out that stricter search criteria do not affect sensibly the access to benefits.…”

Section: The Unemployment Insurance Schemes In Finland Italy and Polandmentioning

confidence: 99%

Unemployment Insurance Schemes, Liquidity Constraints and Re-employment: A Three Country Comparison

Corsini

2012

Comp Econ Stud

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We examine how unemployment schemes and liquidity constraints affect re-employment probabilities trying to assess whether these schemes, through employment services and search requirements, can offset the perverse effect of benefits on unemployment duration. Similarly, given that liquidity constraints and financial pressure also affect reservation wage and search effort, we analyze whether better economic conditions of individuals increase duration. We perform a survival analysis on Finland, Italy and Poland and we find that unemployment insurance schemes have a mixed effect: initially they give incentives to increase search effort but with time they simply reduce liquidity constraints and thus increase duration. We also find that individuals’ liquidity constraints reduce unemployment duration in Italy and Poland but not Finland, suggesting that this aspect is less important in countries with a more developed welfare system

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Effects of Unemployment Insurance Work-Search Requirements: The Maryland Experiment

Cited by 40 publications

References 0 publications

Seek and Ye Shall Find: How Search Requirements Affect Job Finding Rates of Older Workers

Seek and Ye Shall Find: How Search Requirements Affect Job Finding Rates of Older Workers

Seek and Ye Shall Find: How Search Requirements Affect Job Finding Rates of Older Workers

Unemployment Insurance Schemes, Liquidity Constraints and Re-employment: A Three Country Comparison

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