TY  - JOUR
AU  - Meyer,Bruce D.
TI  - Unemployment Insurance And Unemployment Spells
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2546
PY  - 1991
Y2  - February 1991
UR  - http://www.nber.org/papers/w2546
L1  - http://www.nber.org/papers/w2546.pdf
N1  - Author contact info:
Bruce D. Meyer
Harris School of Public Policy
University of Chicago
1155 E. 60th Street
Chicago, IL 60637
Tel: 773/702-2712
Fax: 773/702-0926
E-Mail: bdmeyer@uchicago.edu
AB  - This paper tests the effects of the level and length of unemployment insurance (UI) benefits on unemployment durations. The paper particularly studies individual behavior during the weeks just prior to when benefits lapse. Higher UI benefits are found to have a strong negative effect on the probability of leaving unemployment. However, the probability of leaving unemployment rises dramatically just prior to when benefits lapse. When the length of benefits is extended, the probability of a spell ending is also very high in the week benefits were previously expected to lapse. Individual data are used with accurate information on spell durations, and the level and length of benefits. Semiparametric estimation techniques are used and compared to alternative approaches. The semiparametric approach yields more plausible estimates and provides useful diagnostics.
ER  -