Analyzing the Relation of Unemployment Insurance to Unemployment

Alan L. Gustman

NBER Working Paper No. 512
Issued in July 1980
NBER Program(s):Labor Studies

This paper presents a framework for analyzing the relation of unemployment insurance to unemployment and applies the framework to evaluate recent developments in the UI literature and future research needs. Unemployment is decomposed into more basic elements related to the labor market flows which determine unemployment incidence and duration. It is also disaggregated by reason for unemployment -- e.g., entry into the labor force or quit last job. A matrix containing those definitional elements of unemployment which are potentially affected by the UI system forms the basis for organizing the discussion. Each component of unemployment which may be affected by variations in characteristics of the UI system is considered in turn. The discussion of each of these elements focuses on recent theoretical arid empirical studies which analyze how they are influenced by features of the UI system. By proceeding systematically through the elements which comprise unemployment and considering the major behavioral explanations linking the unemployment insurance system to unemployment, it is possible to determine where the analysis has proceeded satisfactorily and where major gaps remain.

download in pdf format
   (565 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w0512

Published: Gustman, Alan L. "Analyzing the Relation of Unemployment Insurance to Unemployment." Research in Labor Economics, edited by Ronald Ehrenberg, Vol. 5,(1982), pp. 69-114.

Users who downloaded this paper also downloaded* these:
Clark and Summers w0920 Unemployment Insurance and Labor Force Transitions
Katz and Meyer w2741 The Impact of the Potential Duration of Unemployment Benefits on the Duration of Unemployment
Gustman w1223 Modeling Individuals' Behavior: Evaluation of a Policymaker's Tool
Gustafson and Levine w6489 Less-Skilled Workers, Welfare Reform, and the Unemployment Insurance System
Bloom and Freeman w3973 The Fall in Private Pension Coverage in the U.S.
NBER Videos

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email:

Contact Us