Year

1994

Series

Upjohn Institute Working Paper No. 94-28

**Published Version**

The Journal of Human Resources 30 (1995): [534]-550

DOI

10.17848/wp94-28

Abstract

Social experiments conducted in Pennsylvania and Washington tested the effect of offering Unemployment Insurance (UI) claimants a cash bonus for rapid reemployment. This paper combines data from the two experiments and uses a consistent framework to evaluate the experiments and determine with greater certainty the extent to which a reemployment bonus can affect economic outcomes. Bonus offers in each of the experiments generated statistically significant but relatively modest reductions in UI receipt. Since the estimated impacts on UI receipt were modest, the reemployment bonuses did not generate the UI savings necessary to pay for administering and paying the bonuses. Hence, contrary to earlier findings from a bonus experiment conducted in Illinois, findings from the Pennsylvania and Washington experiments strongly suggest that a reemployment bonus is not a cost-effective method of speeding the reemployment of UI claimants.

Sponsorship

Funding provided by the U.S. Department of Labor and the W.E. Upjohn Institute for Employment Research

Subject Areas

UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS; Unemployment insurance; WORKFORCE DEVELOPMENT; Labor exchange

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Citation

Decker, Paul T., and Christopher J. O'Leary. 1994. "Evaluating Pooled Evidence from the Reemployment Bonus Experiments." Upjohn Institute Working Paper No. 94-28. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp94-28