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 … do not affect the reemployment wages conditional on the month of unemployment exit, implying reservation wages do not …

risk. Using Panel Study of Income Dynamics data linked to industry data on injuries and unemployment, we find:1) Nearly all … loss; 2) Similarly, nearly all the compensation for losses due to cyclical unemployment is compensation for increases in … duration, especially for increases in duration beyond the 26 weeks of unemployment that are usually compensated by unemployment …

downturns. A large part of the long-term earnings losses and their cyclicality is driven by declines in wages. Key to these long …

large reforms of unemployment insurance (UI) benefit levels in Austria. We document that wages are insensitive to UI benefit … sensitivities larger than $0.03. The insensitivity holds even among workers with low wages and high predicted unemployment duration …. The value of nonemployment is therefore a key determinant of wages. We measure the wage effect of changes in the value of …

-term unemployment assistance (UA). The reform raised the minimum age to receive unlimited-duration UA from 52 to 55. Using a difference …) higher labor force exit and other programs' take-up, especially among older workers; (iii) lower re-employment wages. The …

-financed unemployment insurance. The key element in the analysis is that unemployment insurance is more attractive than risk shifting as a … way for workers to obtain income during unemployment. The paper also analyses the effects of risk shifting and … analysis focuses on the interaction between contractual arrangements for shifting risk from workers to employers and tax …

unemployment benefits on the duration of joblessness in Austria, and discuss implementation issues that may arise in similar … nonparametric estimation (e.g. Imbens et al. (2012) and Calonico et al. (2014)) are sometimes interpreted by practitioners as … pointing to a default estimation procedure, we show that in any given application different procedures may perform better or …

By how much does an extension of unemployment benefits affect macroeconomic outcomes such as unemployment? Answering … this question is challenging because U.S. law extends benefits for states experiencing high unemployment. We use data … and find that they increased the unemployment rate by at most 0.3 percentage point …

We consider nonparametric identification and estimation in a nonseparable model where a continuous regressor of … institutional settings where a policy variable (such as weekly unemployment benefits) is determined by an observed but potentially … endogenous assignment variable (like previous earnings). We provide new results on identification and estimation for these …