unemployment benefits

Author
Abstract

This paper provides new evidence on time use and subjective well-being of employed and unemployed individuals in 14 countries. We devote particular attention to characterizing and modeling job search intensity, measured by the amount of time devoted to searching for a new job. Job search intensity varies considerably across countries, and is higher in countries that have higher wage dispersion. We also examine the relationship between unemployment benefits and job search.

Year of Publication
2008
Number
524
Date Published
05/2008
Publication Language
eng
Citation Key
7865
Krueger, A. (2008). The Lot of the Unemployed: A Time Use Perspective. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01w37636771 (Original work published 05/2008AD)
Working Papers
Abstract

This paper provides new evidence on job search intensity of the unemployed in the U.S., modeling job search intensity as time allocated to job search activities. The main findings are: 1) the average unemployed worker in the U.S. devotes about 41 minutes to job search on weekdays, which is substantially more than his or her European counterpart; 2) workers who expect to be recalled by their previous employer search substantially less than the average unemployed worker; 3) across the 50 states and D.C., job search is inversely related to the generosity of unemployment benefits, with an elasticity between -1.6 and -2.2; 4) the predicted wage is a strong predictor of time devoted to job search, with an elasticity in excess of 2.5; 5) job search intensity for those eligible for Unemployment Insurance (UI) increases prior to benefit exhaustion; 6) time devoted to job search is fairly constant regardless of unemployment duration for those who are ineligible for UI. A nonparametric Monte Carlo technique suggests that the relationship between job search effort and the duration of unemployment for a cross-section of job seekers is only slightly biased by length-based sampling.

Year of Publication
2008
Number
532
Date Published
08/2008
Publication Language
eng
Citation Key
8384
Krueger, A., & Mueller, A. (2008). Job Search and Unemployment Insurance: New Evidence from Time Use Data. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01th83kz34p (Original work published 08/2008AD)
Working Papers