abolished the dependence of unemployment insurance benefits on the elapsed unemployment duration and simultaneously introduced … unemployment duration is positive and significant. Neglecting selectivity leads to an underestimation of the effects in absolute …

using two natural experiments. In Taiwan, since unemployed workers eligible for unemployment benefits receive 50% of their … also extends reemployment bonuses. We show the effect of extended benefits on unemployment duration can be decomposed to … estimates suggest liquidity effect explains 87% of the increase in unemployment duration due to extended benefits in Taiwan. Our …