Full Citation

Title: The Relationship Between Unemployment Insurance and Unemployment: Heterogeneity and Variation Over Time

Citation Type: Dissertation/Thesis

Publication Year: 2022

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Abstract: Recently, huge public expenditures have been devoted to financing Unemployment Insurance (UI) programs, reviving the age-old debate on the social costs and benefits of such programs that can either disincentivise work or revitalise the labor market through a better allocation of its resources. We sought to analyse heterogeneity in responses to UI in terms of unemployment duration and their evolution over time in the US context. We use fixed-effects models on Current Population Survey data and implement interactions between unemployment benefits and different groups of individuals divided into several classes of age, gender, education, race, geographic origin, and period. We find a greater sensitivity of women and the more educated to the generosity of UI. Above all, we discovered a hitherto little-documented reality, which is that despite the increasing generosity of Unemployment Insurance, individuals' responses to it gradually decrease over the years and drastically from the end of the 1980s. It therefore appears that the disincentive to work has become very negligible. Future research could study the determinants of this temporal decrease in the effects of UI. A major interest could be given to non-monetary motivations for returning to work or to the search for possible structural changes in the labour market. Keywords : Unemployment Insurance, unemployment, unemployment duration, responses to Unemployment Insurance.

Url: https://archipel.uqam.ca/15813/

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Authors: Bazié, Christ Kevin

Institution: University of Quebec in Montreal

Department: Economics

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Pages: 1-110

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

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