Job search, wage offers, and unemployment insurance

David M. Blau, Philip K. Robins

Research output: Contribution to journalArticlepeer-review

21 Scopus citations

Abstract

Several previous studies have estimated that unemployment insurance (UI) causes an increase in the duration of unemployment and have concluded from this that UI raises reservation wages. However, job-search theory implies that UI can also affect duration through its impact on job offer arrival rates and/or through an impact on wage offers. In this paper we attempt to identify these possible additional effects using survey data on a sample of unemployed individuals. Like previous studies, we find that UI significantly increases unemployment duration. However, part of this effect is estimated to stem from a decrease in the offer arrival rate as well as from a higher reservation wage.

Original languageEnglish (US)
Pages (from-to)173-197
Number of pages25
JournalJournal of Public Economics
Volume29
Issue number2
DOIs
StatePublished - Mar 1986

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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