Unemployment insurance benefit levels and consumption changes

• 成果类型: Article
• 署名作者: Browning, M; Crossley, TF
• 署名单位: University of Copenhagen; York University - Canada; Australian National University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(00)00084-0
• 发表日期: 2001
• 页码: 1-23
• 关键词: Unemployment insurance; living standards; consumption; liquidity constraints

摘要

We use a Canadian survey of the unemployed to examine how household expenditures after a job loss respond to the level of income replacement provided by UI. We isolate a liquidity constraint or 'transitory income' effect from the 'permanent income' shock of job loss, and from the costs of working. We find significant effects of varying the replacement ratio among the third of the sample who did not have assets at the job loss. We conclude that the consumption smoothing benefit of UI is concentrated wholly on a sub-group of the unemployed. (C) 2001 Elsevier Science S.A. All rights reserved.