Long-Term Effects of Reemployment Programs
We estimate the effects of eliminating the unemployment insurance (UI) work test and intensive job search assistance (JSA) on UI claimants' employment and earnings over the ten years following the Washington Alternative-Work Search experiment (WAWS). The findings suggest that eliminating the work test led to substantially longer spells of UI receipt in the short-term and a lower probability of employment in the long term. They also suggest that JSA led to shorter spells of UI receipt in the short term and a higher probability of employment and (possibly) increased earnings in the long term. We discuss the possible mechanisms behind these effects, although the evidence is incomplete in the case of the work test. JSA appears to have had its largest effects on older workers with no post-secondary, and these are the workers for whom the program is intended.
W.E. Upjohn Institute
UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS; Unemployment insurance