scholarly journals Does Extending Unemployment Benefits Improve Job Quality?

2017 ◽  
Vol 107 (2) ◽  
pp. 527-561 ◽  
Author(s):  
Arash Nekoei ◽  
Andrea Weber
Keyword(s):  
Unemployment Insurance ◽  
Negative Relationship ◽  
Unemployment Duration ◽  
Duration Dependence ◽  
Regression Discontinuity Design ◽  
Matching Function ◽  
Unemployment Benefits ◽  
Wage Effect ◽  
Wage Effects ◽  
Positive Effect

Contrary to standard search models predictions, past studies have not found a positive effect of unemployment insurance (UI) on reemployment wages. We estimate a positive UI wage effect exploiting an age-based regression discontinuity design in Austria. A search model incorporating duration dependence predicts two countervailing forces: UI induces workers to seek higher-wage jobs, but reduces wages by lengthening unemployment. Matching-function heterogeneity plausibly generates a negative relationship between the UI unemployment-duration and wage effects, which holds empirically in our sample and across studies, reconciling disparate wage-effect estimates. Empirically, UI raises wages by improving reemployment firm quality and attenuating wage drops. (JEL J31, J64, J65)

scholarly journals The Effect of Unemployment Benefits and Nonemployment Durations on Wages

2016 ◽  
Vol 106 (3) ◽  
pp. 739-777 ◽  
Author(s):  
Johannes F. Schmieder ◽  
Till von Wachter ◽  
Stefan Bender
Keyword(s):  
Unemployment Insurance ◽  
Instrumental Variable ◽  
Reservation Wage ◽  
Unemployment Benefits ◽  
Reservation Wages ◽  
Wage Effects ◽  
Key Policy

We estimate that unemployment insurance (UI) extensions reduce reemployment wages using sharp age discontinuities in UI eligibility in Germany. We show this effect combines two key policy parameters: the effect of UI on reservation wages and the effect of nonemployment durations on wage offers. Our framework implies if UI extensions do not affect wages conditional on duration, then reservation wages do not bind. We derive resulting instrumental variable estimates for the effect of nonemployment durations on wage offers and bounds for reservation wage effects. The effect of UI on wages we find arises mainly from substantial negative nonemployment duration effects. (JEL J31, J64, J65)

scholarly journals Analysing the relationship between unemployment benefits and unemployment duration

2020 ◽  
Vol 42 (3) ◽  
pp. 280-297
Author(s):  
Laura Južnik Rotar ◽  
Sabina Krsnik
Keyword(s):  
Social Policy ◽  
Negative Relationship ◽  
Unemployment Duration ◽  
Unemployment Benefits ◽  
The European Union ◽  
Homogeneous Groups ◽  
Panel Data Regression ◽  
Data Regression ◽  
Duration Of Unemployment ◽  
The Relationship

AbstractThe aim of this paper is to analyse the relationship between unemployment benefits and durations of unemployment with respect to different approaches in social policy. The hypothesis of the research is that unemployment benefits negatively affect the duration of unemployment. An analysis of the relationship concerning unemployment benefits and duration of unemployment within the European Union Member States (EU-28) between 2006–2018 using panel data regression approach was conducted. The sample was split into sub-samples in order to get more homogeneous groups of EU-28 countries. Estimation results suggest that the more generous a social policy, the more prevalent the negative relationship between unemployment duration and unemployment benefits. Our results also revealed that the better the economic situation, the less pressure is put on unemployment benefits and on the duration of unemployment.

Beschäftigung und Arbeitslosigkeit älterer Arbeitnehmer / Employment and Unemployment of the Elderly

2007 ◽  
Vol 227 (1) ◽  
Author(s):  
Eva Müller ◽  
Ralf A. Wilke ◽  
Philipp Zahn
Keyword(s):  
Empirical Analysis ◽  
Unemployment Insurance ◽  
Early Retirement ◽  
The Elderly ◽  
Unemployment Duration ◽  
Unemployment Benefits ◽  
German Government ◽  
The Public ◽  
Employment Agency ◽  
Unemployment Insurance System

SummaryIn 1997, the German government enacted a reform of the unemployment insurance system which lead to a reduction of the maximum entitlement length for unemployment benefits of the older unemployed in the subsequent years. This paper analyses the effects of this reform on the risk of unemployment and on unemployment duration of the older unemployed aged 54-56. This group is of particular interest because it lost a smooth early retirement path via the unemployment benefits scheme. In our empirical analysis we use German administrative individual data drawn form the registers of the federal employment agency and of the public pension funds. After the reform we expect a lower risk of unemployment and shorter unemployment durations for the considered age group. This is confirmed by our empirical analysis. We show that the reform effectively reduced the amount of early retirement at the expense of the unemployment insurance. In particular larger companies and their employees use extended entitlement periods for unemployment benefits for early retirement purposes.

scholarly journals Wages and the Value of Nonemployment*

2020 ◽  
Vol 135 (4) ◽  
pp. 1905-1963 ◽  
Author(s):  
Simon Jäger ◽  
Benjamin Schoefer ◽  
Samuel Young ◽  
Josef Zweimüller
Keyword(s):  
Unemployment Insurance ◽  
Unemployment Duration ◽  
Nash Bargaining ◽  
Bargaining Model ◽  
Wage Setting ◽  
Outside Option ◽  
Wage Effect ◽  
Point Estimates ◽  
Experimental Variation ◽  
Quasi Experimental

Abstract Nonemployment is often posited as a worker’s outside option in wage-setting models such as bargaining and wage posting. The value of nonemployment is therefore a key determinant of wages. We measure the wage effect of changes in the value of nonemployment among initially employed workers. Our quasi-experimental variation in the value of nonemployment arises from four large reforms of unemployment insurance (UI) benefit levels in Austria. We document that wages are insensitive to UI benefit changes: point estimates imply a wage response of less than $0.01 per $1.00 UI benefit increase, and we can reject sensitivities larger than $0.03. The insensitivity holds even among workers with low wages and high predicted unemployment duration, and among job switchers hired out of unemployment. The insensitivity of wages to the nonemployment value presents a puzzle to the widely used Nash bargaining model, which predicts a sensitivity of $0.24–$0.48. Our evidence supports wage-setting models that insulate wages from the value of nonemployment.

Unemployment Durations and Extended Unemployment Benefits in Local Labor Markets

ILR Review ◽  
2003 ◽  
Vol 56 (2) ◽  
pp. 324-348 ◽  
Author(s):  
Štěpán Jurajda ◽  
Frederick J. Tannery
Keyword(s):  
Adverse Effect ◽  
Labor Markets ◽  
Unemployment Insurance ◽  
Empirical Studies ◽  
Unemployment Duration ◽  
Local Labor Markets ◽  
Unemployment Benefits ◽  
Labor Market Conditions ◽  
Unemployment Rates ◽  
Special Programs

Many empirical studies have confirmed the theoretical prediction that longer-term Unemployment Insurance (UI) entitlement leads to longer unemployment duration. Most of those studies have examined special programs that provide extra weeks of unemployment benefits when unemployment rates in the region are higher. Hence, they must distinguish if the longer unemployment duration among UI claimants observed in these cases is due to the extended benefits or to the adverse labor market conditions that trigger those extensions. In contrast, this paper measures the effect of identical entitlement extensions across two labor markets facing very different demand conditions—Pittsburgh and Philadelphia, over the years 1980–85. The results confirm findings of the existing literature and indicate that the adverse effect of longer entitlement changes relatively little in response to variation in demand conditions.

The species evenness of “prey” bacteria correlated with Bdellovibrio-and-like-organisms (BALOs) in the microbial network supports the biomass of BALOs in a paddy soil

2020 ◽  
Vol 96 (12) ◽  
Author(s):  
Hang Qian ◽  
Chunli Hou ◽  
Hao Liao ◽  
Li Wang ◽  
Shun Han ◽  
...  
Keyword(s):  
Soil Properties ◽  
Paddy Soil ◽  
High Throughput Sequencing ◽  
Abiotic Factors ◽  
Negative Relationship ◽  
Sequencing Analysis ◽  
Nitrogen Use ◽  
Microbial Network ◽  
Α Diversity ◽  
Positive Effect

ABSTRACT To seek how soil biotic and abiotic factors which might shape the Bdellovibrio-and-like-organisms community, we sampled paddy soils under different fertilization treatments including fertilization without nitrogen (Control), the nitrogen use treatment (N) and the nitrogen overuse one (HNK) at three rice growing stages. The abundances of BALOs were impacted by the rice-growing stages but not the fertilization treatments. The abundances of Bdellovibrionaceae-like were positively associated with soil moisture, which showed a negative relationship with Bacteriovoracaceae-like bacteria. High-throughput sequencing analysis of the whole bacterial community revealed that the α-diversity of BALOs was not correlated with any soil properties data. Network analysis detected eight families directly linked to BALOs, namely, Pseudomonadaceae, Peptostreptococcaceae, Flavobacteriaceae, Sediment-4, Verrucomicrobiaceae, OM27, Solirubrobacteraceae and Roseiflexaceae. The richness and composition of OTUs in the eight families were correlated with different soil properties, while the evenness of them had a positive effect on the predicted BALO biomass. These results highlighted that the bottom-up control of BALOs in paddy soil at least partially relied on the changes of soil water content and the diversity of bacteria directly linked to BALOs in the microbial network.

New Estimates of the Effect of Marijuana and Cocaine Use on Wages

ILR Review ◽  
1994 ◽  
Vol 47 (3) ◽  
pp. 454-470 ◽  
Author(s):  
Robert Kaestner
Keyword(s):  
Drug Use ◽  
Illicit Drug ◽  
Unobserved Heterogeneity ◽  
Illicit Drug Use ◽  
Longitudinal Survey ◽  
National Longitudinal Survey ◽  
Cross Sectional ◽  
Cocaine Use ◽  
Wage Effects ◽  
Positive Effect

Using the 1984 and 1988 waves of the National Longitudinal Survey of Youth, this study provides an update of several previous cross-sectional estimates of the effect of illicit drug use on wages, as well as the first longitudinal estimates of that effect. The cross-sectional results, which are generally consistent with the surprising findings of previous research, suggest that illicit drug use has a large, positive effect on wages. The longitudinal estimates, which control for unobserved heterogeneity in the sample, are mixed: among men, the estimated wage effects of both marijuana and cocaine use are negative, but among women, the effect of cocaine use remains positive and large. Because the longitudinal model is imprecisely estimated, however, those results are inconclusive.

The Influence of Unemployment Benefits on Unemployment Duration: Evidence from Spain

Labour ◽  
1996 ◽  
Vol 10 (2) ◽  
pp. 239-268 ◽  
Author(s):  
Inmaculada Cebrián ◽  
Carlos García ◽  
Juan Muro ◽  
Luis Toharia ◽  
Elizabeth Villagómez
Keyword(s):  
Unemployment Duration ◽  
Unemployment Benefits
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