Market Externalities of Large Unemployment Insurance Extension Programs

• 成果类型: Article
• 署名作者: Lalive, Rafael; Landais, Camille; Zweimuller, Josef
• 署名单位: University of Lausanne; University of Zurich; University of London; London School Economics & Political Science; University of Zurich; IZA Institute Labor Economics
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20131273
• 发表日期: 2015
• 页码: 3564-3596
• 关键词: BENEFIT DURATION; Quasi-experiment; AUSTRIA

摘要

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.