This paper looks at the effects of unemployment on re-employment wage for men using the first seven waves of the … of sample selection and unobserved heterogeneity are also addressed in the analyses. This study finds that, unemployment … to increase to about 14% in the fourth year before starting to decline. In addition, the first spell of unemployment is …

This paper provides quasi-experimental estimates of the causal effect of long-term unemployment on wages. Using … standard job search theory, the paper derives and tests conditions on reemployment wages under which Unemployment Insurance (UI …) extensions can be used as instrumental variables (IV) for unemployment duration. Using a regression discontinuity design, the …

welfare. This insight leads to a novel test for the optimality of unemployment insurance based on the responsiveness of … reservation wages to unemployment benefits. Some existing estimates imply significant gains to raising the current level of … unemployment benefits in the United States, but highlight the need for more research on the determinants of reservation wages. Our …