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Title: Unemployment Insurance (UI) Benefit Generosity and Labor Supply from 2002 to 2020: Evidence from California UI Records
This paper obtains comparable estimates of the effect of unemployment insurance (UI) benefits on labor supply throughout the unemployment spell and over the business cycle using a regression kink design and 20 years of administrative data from California. For a given unemployment duration, the behavioral effect of UI benefit levels on labor supply does not vary with the business cycle from 2002 to 2019. However, due to increased coverage from extensions in benefit durations, the duration elasticity of UI benefits rises during recessions. The behavioral effect during the start of the COVID-19 pandemic is substantially lower at all unemployment durations.  more » « less
Award ID(s):
2242581 2242472
PAR ID:
10510530
Author(s) / Creator(s):
; ; ;
Publisher / Repository:
Journal of Labor Economics
Date Published:
Journal Name:
Journal of Labor Economics
Volume:
42
Issue:
S1
ISSN:
0734-306X
Page Range / eLocation ID:
S379 to S416
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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