The Effect of Unemployment Benefits and Nonemployment Durations on Wages

• 成果类型: Article
• 署名作者: Schmieder, Johannes F.; von Wachter, Till; Bender, Stefan
• 署名单位: Boston University; National Bureau of Economic Research; IZA Institute Labor Economics; University of California System; University of California Los Angeles; Centre for Economic Policy Research - UK; Deutsche Bundesbank
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20141566
• 发表日期: 2016
• 页码: 739-777
• 关键词: job search; insurance; models; displacement; dependence; liquidity; skill; work

摘要

We estimate that unemployment insurance (UI) extensions reduce reemployment wages using sharp age discontinuities in UI eligibility in Germany. We show this effect combines two key policy parameters: the effect of UI on reservation wages and the effect of nonemployment durations on wage offers. Our framework implies if UI extensions do not affect wages conditional on duration, then reservation wages do not bind. We derive resulting instrumental variable estimates for the effect of nonemployment durations on wage offers and bounds for reservation wage effects. The effect of UI on wages we find arises mainly from substantial negative nonemployment duration effects.