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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, enormous public spending has been devoted to funding unemployment insurance (UI), thus reigniting the perennial debate about the social costs and benefits of such programs, which can either disincentivize work or revitalize the labor market through a better allocation of its resources. We sought to analyze the heterogeneity in responses to unemployment benefits in terms of unemployment duration and their temporal evolution in the American context. We use fixed-effects models on data from the Current Population Survey and perform interactions between unemployment benefits and different groups of individuals across several age, gender, education, race, geographic origin, and time period classes. We discover greater responsiveness among women and the more highly educated to the generosity of benefits. Above all, we discovered a previously little-documented reality: that despite the growing generosity of unemployment insurance, individuals' responses to it gradually declined over the years, and drastically from the end of the 1980s. It then appears that the disincentive effect on work has become very negligible.

Url: https://archipel.uqam.ca/15813/1/M17739.pdf

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Authors: Bazie, Christ

Institution: University of Quebec at Montreal

Department: Economics

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Pages: 1-110

Data Collections: IPUMS CPS

Topics: Health, Labor Force and Occupational Structure

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