Micro and Macro Effects of Unemployment Insurance Policies: Evidence from Missouri

S-Tier
Journal: Journal of Political Economy
Year: 2025
Volume: 133
Issue: 9
Pages: 2836 - 2873

Authors (3)

Fatih Karahan (not in RePEc) Kurt Mitman (Centre for Economic Policy Res...) Brendan Moore (not in RePEc)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop a method to jointly measure the response of worker search effort (micro effect) and vacancy creation (macro effect) to changes in the duration of unemployment insurance (UI) benefits. To implement this approach, we exploit an unexpected cut in UI durations in Missouri and provide quasi-experimental evidence on the effect of UI on the labor market. In our baseline specification, the data indicate that the cut in Missouri increased job-finding rates by 12% by raising firm vacancy creation and the search effort of unemployed workers. Both channels contribute roughly equally to the total effect.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/736215
Journal Field
General
Author Count
3
Added to Database
2026-01-26