This paper presents new evidence on why unemployment insurance (UI) benefits affect search behavior and develops a … unemployment durations caused by UI benefits is due to a "liquidity effect" rather than distortions in marginal incentives to …

It is well known that unemployment benefits raise unemployment durations. This result has traditionally been … hazard. This paper questions this interpretation by showing that unemployment benefits can also affect durations through an … proxies such as asset holdings. I find that increases in unemployment benefits have small effects on durations in the …

One goal of extending the duration of unemployment insurance (UI) in recessions is to increase UI coverage in the face … of longer unemployment spells. Although it is a common concern that such extensions may themselves raise nonemployment … differential effects of UI in booms and recessions, this paper exploits the fact that, in Germany, potential UI benefit duration is …

We study how the level of unemployment insurance (UI) benefits that trades off the consumption smoothing benefit with … moral hazard cost is procyclical, greater when the unemployment rate is relatively low. By contrast, our evidence suggests … standard deviation increase in the unemployment rate leads to a roughly 14 to 27 percentage point increase in the welfare …

We introduce dynamic incentive contracts into a model of unemployment dynamics and present three results. First, wage … cyclicality from incentives does not dampen unemployment dynamics: the response of unemployment to shocks is first … cyclicality from bargaining dampens unemployment dynamics through the standard mechanism. Third, our calibrated model suggests 46 …

insight into the problem by examining the determinants of transitions between non-employment (or unemployment) and employment … measured by their education and 1990 wage, have shorter non-employment spells. I also present results for employment duration …. The most important similarity between the duration of non-employment and employment is the influence of the 1990 wage …

Most data used to study the durations of unemployment spells come from the Current Population Survey, which is a point …-in-time survey and gives an incomplete picture of the underlying duration distribution. We introduce a new sample of completed … unemployment spells obtained from panel data and apply CPS sampling and reporting techniques to replicate the type of data used by …

considerably lower wages. At the same time, the data provide no evidence that early unemployment sets off a vicious cycle of … recurrent unemployment. The reduced employment effects die off very quickly. What appears to persist are effects of lost work …