2024-03-28T19:32:12
112952
Thu Mar 28 19:32:15 EDT 2024
Replication data for: Market Externalities of Large Unemployment Insurance Extension Programs
Rafael Lalive
Camille Landais
Josef Zweimüller
112952
https://doi.org/10.3886/E112952V1
We provide evidence that unemployment insurance affects equilibrium conditions in the labor market, which creates significant "market externalities." We provide a framework for identification of such equilibrium effects and implement it using the Regional Extension Benefit Program (REBP) in Austria which extended the duration of UI benefits for a large group of eligible workers in selected regions of Austria. We show that non-eligible workers in REBP regions have higher job finding rates, lower unemployment durations, and a lower risk of long-term unemployment. We discuss the implications of our results for optimal UI policy. (JEL E24, J64, J65, R23)
E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
J64 Unemployment: Models, Duration, Incidence, and Job Search
J65 Unemployment Insurance; Severance Pay; Plant Closings
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics