TY - JOUR
T1 - Benefit duration, unemployment duration and job match quality: A regression-discontinuity approach
AU - Caliendo, Marco
AU - Tatsiramos, Konstantinos
AU - Uhlendorff, Arne
PY - 2013/6
Y1 - 2013/6
N2 - We use a sharp discontinuity in the maximum duration of benefit entitlement to identify the effect of extended benefit duration on unemployment duration and post-unemployment outcomes (employment stability and re-employment wages). We address dynamic selection, which may arise even under an initially random assignment to treatment, estimating a bivariate discrete-time hazard model jointly with a wage equation and correlated unobservables. Owing to the non-stationarity of job search behavior, we find heterogeneous effects of extended benefit duration on the re-employment hazard and on job match quality. Our results suggest that the unemployed who find a job close to and after benefit exhaustion experience less stable employment patterns and receive lower re-employment wages compared to their counterparts who receive extended benefits and exit unemployment in the same period. These results are found to be significant for men but not for women. © 2012 John Wiley & Sons, Ltd.
AB - We use a sharp discontinuity in the maximum duration of benefit entitlement to identify the effect of extended benefit duration on unemployment duration and post-unemployment outcomes (employment stability and re-employment wages). We address dynamic selection, which may arise even under an initially random assignment to treatment, estimating a bivariate discrete-time hazard model jointly with a wage equation and correlated unobservables. Owing to the non-stationarity of job search behavior, we find heterogeneous effects of extended benefit duration on the re-employment hazard and on job match quality. Our results suggest that the unemployed who find a job close to and after benefit exhaustion experience less stable employment patterns and receive lower re-employment wages compared to their counterparts who receive extended benefits and exit unemployment in the same period. These results are found to be significant for men but not for women. © 2012 John Wiley & Sons, Ltd.
UR - https://www.mendeley.com/catalogue/255d69a2-dca7-37a9-aea6-43b3213432d5/
U2 - 10.1002/jae.2293
DO - 10.1002/jae.2293
M3 - Article
SN - 0883-7252
VL - 28
SP - 604
EP - 627
JO - Journal of Applied Econometrics
JF - Journal of Applied Econometrics
IS - 4
ER -