Do Unemployment Insurance Benefits Improve Match Quality? Evidence from Recent U.S. Recessions

2020 ◽  
Author(s):  
Ammar Farooq ◽  
Adriana Debora Kugler ◽  
Umberto Muratori
Keyword(s):  
Unemployment Insurance ◽  
Match Quality ◽  
Insurance Benefits ◽  
Quality Evidence

scholarly journals Regional Variations in Cyclical Employment

1984 ◽  
Vol 16 (7) ◽  
pp. 863-877 ◽  
Author(s):  
M I Howland
Keyword(s):  
Labor Force ◽  
Unemployment Insurance ◽  
Capital Stock ◽  
Insurance Benefits ◽  
World War 2 ◽  
Short Run ◽  
State Employment ◽  
State Variation ◽  
Industrial Mix ◽  
Employment Decline

In this paper the author develops and tests a model of regional responses to national business-cycles. The model divides cyclical decline in each state into two sectors: a basic sector and a nonbasic sector. The industrial mix, capital—labor ratio, age of capital stock, level of unemployment insurance benefits, labor shortage, and extent of labor-force unionization of a state are hypothesized to influence the response to national recessions by the economy of a state. Employment decline in the nonbasic sector of the economy of a state is a function of employment decline in basic industries and is transmitted through a short-run multiplier. The model is tested on data from five post World War 2 recessions between 1950 and 1975. The findings indicate that industry mix at the two-digit Standard Industrial Code level explains 36% of the across-state variation in cyclical employment. The results also indicate that an old capital-stock, a nonunion labor force, and generous unemployment insurance benefits promote cyclical stability in state economies.

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