Unemployment Insurance and Unemployment Behavior

Publication Date


Grant Type

Early Career Research Award


Individuals' expectations about future entitlement to employment history-contingent transfer payments have the potential to impact on labor supply behavior. Drawing on this observation, the objective of this empirical project is to extend our understanding of how employment history-contingent unemployment insurance benefits shape labor supply behavior. To achieve this objective I propose to estimate a model in which forward-looking individuals make labor supply choices taking into account how current labor supply behavior will affect entitlement to unemployment insurance benefits in the future. The results of this analysis will give us a more complete understanding of the labor supply effects of unemployment insurance, and will provide a useful input to policy discussions concerning possible reforms to the design of unemployment insurance benefits.