This paper estimates the causal effect of long-term unemployment on wages. Job search theory implies that if … Unemployment Insurance (UI) extensions do not affect wages conditional on the month of unemployment exit, then reservation wages do … not bind on average. Then, UI extensions affect mean wages only through unemployment durations and are valid instrumental …

We show that workers displaced from their stable jobs during mass-layoffs in 1982 recession in Germany suffered … long-run loss is due to a decline in wages. We also show that even the generous German unemployment insurance system … Displacement ; Mass-Layoffs ; Unemployment Insurance System …

This paper evaluates the impact of large changes in the duration of unemployment insurance (UI) in different economic … environments on labour supply, job matches, and search behaviour. We show that differences in eligibility thresholds by exact age … unemployment spells and career histo-ries over twenty years from Germany. We find that increases in UI have small to modest effects …

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 …

This paper estimates the causal effect of long-term unemployment on wages. Job search theory implies that if … Unemployment Insurance (UI) extensions do not affect wages conditional on the month of unemployment exit, then reservation wages do … not bind on average. Then, UI extensions affect mean wages only through unemployment durations and are valid instrumental …

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 …