Front-Loading the Unemployment Benefit: An Empirical Assessment

• 成果类型: Article
• 署名作者: Lindner, Attila; Reizer, Balazs
• 署名单位: University of London; University College London
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20180138
• 发表日期: 2020
• 页码: 140-174
• 关键词: insurance benefits; job search; duration; workers; savings; DESIGN

摘要

We estimate the effect of front-loading unemployment benefit payments on nonemployment duration and reemployment wages. Exploiting a sharp change in the path of benefits for those who claimed unemployment benefits after November 1, 2005 in Hungary, we show that nonemployment duration fell by two weeks, while reemployment wages rose by 1.4 percent as a result of front-loading. We show that these behavioral responses were large enough to offset the mechanical cost increase of the unemployment insurance. We argue that our results indicate that benefit front-loading was a Pareto improving policy reform as both unemployed and employed workers were made better off.