We exploit policy discontinuities in Poland’s unemployment insurance to examine the causal effect of changes to both benefit durations and levels. Using a regression discontinuity approach, we uncover three findings: (1) Higher benefit levels distort employment more than benefit extensions....

Cash benefit programmes have increasingly emphasised conditionality and "demanding" forms of activation in recent decades. Behavioural requirements are now a key element in reforms of unemployment benefits (UB) and related out-of-work benefits in high-income OECD countries, and they are the...

We quantify micro and macro effects of changes in the potential benefit duration (PBD) in unemployment insurance. In Poland, the PBD is 12 months for the newly unemployed if the previous year's county unemployment rate is more than 150% of the national average, and 6 months otherwise. We exploit...

The long period of fast economic growth in China has created entrenched patterns of dualization in the labour market, and in social security. Chinese law calls for all employment to be formalized and covered by a relatively generous system of five social insurances, including one for...

When searching for employment, workers consider non-wage job characteristics, such as effort requirements or amenities. We study an environment where unemployed workers search for jobs of different quality in a labor market characterized by directed search. In equilibrium, firms are more likely...

This paper tests whether partially unemployed workers value future preserved benefits when they bunch at the kink of the unemployment insurance benefit-withdrawal schedule. I extend the bunching formula of Saez (2010) to a dynamic setting that accounts for the value of future benefits tied to...

This paper provides novel insights into labor market dynamics during the COVID-19 pandemic and the subsequent recovery period in Uruguay. Using social security administrative records, we focus on the gender-differentiated patterns of labor market transitions following the pandemic outbreak,...

In a union of states with partial mobility of households and firms we analyze the setting of minimum wages against the background of unemployment insurance. We find that unemployment insurance is always efficiently organized by decentral decisions. In contrast, for symmetric states only the...

Female workers in China have a de jure right to maternity benefits, as enshrined in policy and legal documents since the 1950s. This article examines why this entitlement is not always de facto guaranteed as stipulated in the legislation. We use the conceptual framework of gradual institutional...

I study the labor market risks associated with being self-employed. I document that the self-employed are subject to larger earnings fluctuations than employees and that they frequently transition into unemployment. Given the self-employed are not eligible to unemployment insurance, I analyze...

Mit dem SGB-III-Modernisierungsgesetz sollen die Arbeitslosenversicherung und die Arbeitsförderung bürgerfreundlicher, transparenter, effizienter und unbürokratischer gestaltet werden. Das IAB nimmt Stellung zu folgenden Aspekten des Referentenentwurfs dieses Gesetzes: Kooperationsplan zur...

This paper studies the welfare effects associated with the provision of unemployment insurance (UI) benefits when formal workers represent only a small proportion of the labor market and informal workers can submit fraudulent claims for UI benefits. We develop a model that incorporates these...

Die Bundesregierung hat einen umfangreichen Entwurf eines Gesetzes zur Modernisierung der Arbeitslosenversicherung und Arbeitsförderung (SGB-III-Modernisierungsgesetz) vorgelegt, der am 4.11.2024 im Ausschuss für Arbeit und Soziales des Deutschen Bundestags in einer öffentlichen Anhörung zum...

This study documents self-employed workers' characteristics associated with their career paths after a business closure in order to improve employment insurance for such workers. Utilizing work history data from the Korean Labor & Income Panel Survey, a competing-risks regression model is...

We quantify micro and macro effects of changes in the potential benefit duration (PBD) in unemployment insurance. In Poland, the PBD is 12 months for the newly unemployed if the previous year's county unemployment rate is more than 150% of the national average, and 6 months otherwise. We exploit...

This report focuses on unemployment and minimum income benefits for people of working age. Individuals with short or no employment records (mainly young people), the self-employed, those with non-standard working arrangements, and the long-term unemployed are often not entitled to higher-tier,...

This report focuses on unemployment and minimum income benefits for people of working age. Individuals with short or no employment records (mainly young people), the self-employed, those with non-standard working arrangements, and the long-term unemployed are often not entitled to higher-tier,...

We study the interaction between unemployment insurance (UI) and other social transfers exploiting state-level changes to UI generosity and data from the Survey of Income and Program Participation (1990-2013). We find that more generous UI leads to a reduction in the receipt of other public...

How costly are taxes for young firms? In this paper, we demonstrate that even small payroll taxes significantly distort entry, growth, and hiring decisions. First, leveraging cross-sectional variation in the taxes faced by new employers, we find that higher taxes discourage new firms from hiring...

An unemployed person has the right, under certain conditions and for a limited period, to search for a job in another Member State while retaining the unemployment benefit from the competent Member State. The Portable Document U2 (PD U2) certifies this right.

Approximately 10 percent of Unemployment Insurance (UI) claimants in the United States are denied benefits after being deemed at-fault for their job loss by a government examiner. Using administrative data from California and an examiner leniency design, we estimate the causal effects of...

Wage insurance provides income support to displaced workers who find reemployment at a lower wage. We analyze wage insurance in the context of the U.S. Trade Adjustment Assistance (TAA) program by merging linked employer-employee Census data to TAA petitions and leveraging a discontinuity in...

This chapter, prepared for the Handbook of Labor Economics, presents a comprehensive overview of how labor economists understand job search among the unemployed and how job search is shaped by unemployment insurance (UI) and active labor market policies (ALMP). It focuses on synthesizing key...

I study the ramifications of the German short-time work (STW) scheme using novel administrative data on STW and drawing on evidence from establishment surveys that are linked to the administrative data. I show that, besides financial reasons, firms value and use STW because it allows them to...

Do households value access to free health insurance when making labor supply decisions? We address this question by exploiting the 2002 introduction of universal health insurance in Mexico (Seguro Popular, SP), that broke the link between access to health care and job contract. Reduced-form...

We study how the frequency of government transfer payments affects spending behavior. Our empirical approach uses transaction-level data on income and spending and exploits quasi-random delays in the receipt of unemployment insurance (UI) benefits. Spending drops by about half of the loss in...

We analyze unique data on three sources of information on the probability of re‑employment within 6 months (RE6), for the same individuals sampled from the inflow into unemployment. First, they were asked for their perceived probability of RE6. Second, their caseworkers revealed whether they...

This paper shows that less generous unemployment benefits in one country may generate substantial negative long-run consumption spillovers to non-reforming countries under incomplete consumption insurance. While lower benefits reduce unemployment in the reforming country, employed workers...

I study the labor market risks associated with being self-employed. I document that the self-employed are subject to larger earnings fluctuations than employees and that they frequently transition into unemployment. Given that the self-employed are not eligible to unemployment insurance, I...