scholarly journals Assessing the Welfare Effects of Unemployment Benefits Using the Regression Kink Design

2013 ◽  
Author(s):  
Camille Landais
Keyword(s):  
Welfare Effects ◽  
Unemployment Benefits ◽  
Regression Kink Design

scholarly journals Assessing the Welfare Effects of Unemployment Benefits Using the Regression Kink Design

2015 ◽  
Vol 7 (4) ◽  
pp. 243-278 ◽  
Author(s):  
Camille Landais
Keyword(s):  
Moral Hazard ◽  
Labor Supply ◽  
Unemployment Insurance ◽  
Welfare Effects ◽  
Time Profile ◽  
Unemployment Benefits ◽  
Search Effort ◽  
Benefit Level ◽  
The Us ◽  
Regression Kink Design

I show how, in the tradition of the dynamic labor supply literature, one can identify the moral hazard effects and liquidity effects of unemployment insurance (UI) using variations along the time profile of unemployment benefits. I use this strategy to investigate the anatomy of labor supply responses to UI. I identify the effect of benefit level and potential duration in the regression kink design using kinks in the schedule of benefits in the US. My results suggest that the response of search effort to UI benefits is driven as much by liquidity effects as by moral hazard effects. (JEL D82, J22, J65)

scholarly journals The Effect of Unemployment Benefits on the Duration of Unemployment Insurance Receipt: New Evidence from a Regression Kink Design in Missouri, 2003–2013

2015 ◽  
Vol 105 (5) ◽  
pp. 126-130 ◽  
Author(s):  
David Card ◽  
Andrew Johnston ◽  
Pauline Leung ◽  
Alexandre Mas ◽  
Zhuan Pei
Keyword(s):  
Administrative Data ◽  
Unemployment Insurance ◽  
The State ◽  
Unemployment Benefits ◽  
Experimental Variation ◽  
Quasi Experimental ◽  
Duration Of Unemployment ◽  
Regression Kink Design ◽  
New Evidence

We provide new evidence on the effect of the unemployment insurance (UI) weekly benefit amount on unemployment insurance spells based on administrative data from the state of Missouri covering the period 2003-2013. Identification comes from a regression kink design that exploits the quasi-experimental variation around the kink in the UI benefit schedule. We find that UI durations are more responsive to benefit levels during the recession and its aftermath, with an elasticity between 0.65 and 0.9 as compared to about 0.35 pre-recession.

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