Market Externalities of Large Unemployment Insurance Extension Programs

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State: Public
Version: Final published version
Serval ID
serval:BIB_2D44CA3E64F1
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Market Externalities of Large Unemployment Insurance Extension Programs
Journal
American Economic Review
Author(s)
Lalive R., Landais C., Zweimüller J.
ISSN
0002-8282
Publication state
Published
Issued date
2015
Peer-reviewed
Oui
Volume
105
Number
12
Pages
3564-96
Language
english
Notes
2143
Abstract
We provide evidence that unemployment insurance affects equilibrium conditions in the labor market, which creates significant "market externalities." We provide a framework for identification of such equilibrium effects and implement it using the Regional Extension Benefit Program (REBP) in Austria which extended the duration of UI benefits for a large group of eligible workers in selected regions of Austria. We show that non-eligible workers in REBP regions have higher job finding rates, lower unemployment durations, and a lower risk of long-term unemployment. We discuss the implications of our results for optimal UI policy.
Keywords
BENEFIT DURATION, QUASI-EXPERIMENT, AUSTRIA
Web of science
Create date
18/08/2016 14:23
Last modification date
20/08/2019 13:12
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