EI Impacts on Unemployment Durations and Benefit Receipt:

EI Impacts on Unemployment Durations and Benefit Receipt:

Author:

Publisher:

Published: 2000

Total Pages: 109

ISBN-13:

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This research addresses some of the effects of the move from Unemployment Insurance (UI) to Employment Insurance (EI) on individuals' behaviour. The main questions are the extent to which the move from UI to EI caused a significant change in the durations that individuals remain unemployed and the durations that individuals spend in receipt of UI/EI benefits. Adopting a primarily quasi-experimental approach, the research assesses the effects of the UI to EI move as a whole, without attempting to disentangle the individual contributions of the various new legislative provisions. The methodology, which builds on job search analysis and uses duration-modelling of the determinants of the hazard out of unemployment or UI/EI benefit receipt, also has some more structural elements in the modelling of demographic & regional effects, and in the treatment of seasonality. The work uses the Canadian Out of Employment Panel dataset, linked to UI/EI administrative records, and exploits a straightforward before/after methodology using different cohorts of the Panel to identify overall effects of the move from UI to EI.


Supply and Demand Effects of Unemployment Insurance Benefit Extensions: Evidence from U.S. Counties

Supply and Demand Effects of Unemployment Insurance Benefit Extensions: Evidence from U.S. Counties

Author: Klaus-Peter Hellwig

Publisher: International Monetary Fund

Published: 2021-03-12

Total Pages: 35

ISBN-13: 1513572687

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I use three decades of county-level data to estimate the effects of federal unemployment benefit extensions on economic activity. To overcome the reverse causality coming from the fact that benefit extensions are a function of state unemployment rates, I only use the within-state variation in outcomes to identify treatment effects. Identification rests on a differences-in-differences approach which exploits heterogeneity in county exposure to policy changes. To distinguish demand and supply-side channels, I estimate the model separately for tradable and non-tradable sectors. Finally I use benefit extensions as an instrument to estimate local fiscal multipliers of unemployment benefit transfers. I find (i) that the overall impact of benefit extensions on activity is positive, pointing to strong demand effects; (ii) that, even in tradable sectors, there are no negative supply-side effects from work disincentives; and (iii) a fiscal multiplier estimate of 1.92, similar to estimates in the literature for other types of spending.


Heterogeneous Relationships Between Employment Insurance Receipt and Job Search

Heterogeneous Relationships Between Employment Insurance Receipt and Job Search

Author: Xiao Feng

Publisher:

Published: 2014

Total Pages: 37

ISBN-13:

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I explore the heterogeneous relationships between Canada's Employment Insurance (EI) program and job search intensity before, during and after the recent financial crisis among different subgroups of workers in Canada. I find a significant, positive relationship between job search intensity and EI benefits. The positive relationship between EI benefits and job search hours is largest for women, while the positive relationship between EI benefits and job search expenditures is largest for among workers from poor households. EI recipients experience longer unemployment durations than non-recipients, but the unemployment durations for EI recipients during the recession are shorter than before the recession. My findings have important implications for policy-makers wishing to target EI benefits among populations where such benefits will have the greatest impact.


The Long-term Effects of Unemployment Insurance Extensions on Employment

The Long-term Effects of Unemployment Insurance Extensions on Employment

Author: Johannes F. Schmieder

Publisher:

Published: 2012

Total Pages: 8

ISBN-13:

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The majority of papers analyzing the employment effects of unemployment insurance (UI) benefit durations focuses on the duration of the first unemployment spell. In this paper, we make two contributions. First, we use a regression discontinuity design to analyze the long-term effects of extensions in UI durations. These estimates differ from standard estimates that they incorporate differences in UI benefit receipt and employment due to recurrent unemployment spells. Second, we derive a welfare formula of UI extensions that incorporates recurrent nonemployment spells. We find that accounting for nonemployment beyond the initial spell leads to a significant reduction in estimates of the nonemployment effect of UI extensions by about 25 percent. We show this effect is only partly explained by a mechanical effect due to finite follow-up durations, and mainly arises from a lower probability of days in nonemployment in months after end of the initial nonemployment spell.


Understanding Employment Insurance Claim Patterns

Understanding Employment Insurance Claim Patterns

Author: Shawn de Raaf

Publisher:

Published: 2004

Total Pages: 84

ISBN-13:

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Placed within the context of a discussion of the principles underlying the present-day EI program, this research leads the authors to identify policy options that are worth exploring further in order to make EI more responsive to the realities of today's labour market, while at the same time addressing potential disincentives and inequities in the current system. [...] This study shows that the relationship between EI and the decision to migrate is complex and depends on individuals' degree of attachment to the labour market, since only those who work few weeks per year were found to be more likely to move following the tightening of the EI program in the mid-1990s. [...] This overhaul took the form of the Employment Insurance (EI) program introduced in 1996 to bring the program up-to-pace with changes in the economy.6 Along with a requirement to reduce program costs, program designers endeavoured "to ensure that the system was responsive to the realities of today's labour market and to remove disincentives and inequities in the system" (HRDC, 1998b, p. i). [...] The 1996 reform represented the culmination of a series of modifications in the mid- 1990s that reduced the generosity of the program. [...] Another important research element was the series of in-depth evaluation studies sponsored by Human Resources and Skills Development Canada (HRSDC) in the late 1990s, which provided important lessons in the ongoing refinement of the program.7 The subject matter of these studies was wide-ranging, from the impact of EI's switch to an hours-based system to the implementation of income supplements for.


Flexibility and employment security in Europe

Flexibility and employment security in Europe

Author: R. J. A. Muffels

Publisher: Edward Elgar Publishing

Published: 2014-05-14

Total Pages: 422

ISBN-13: 1781007691

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This title presents carefully selected articles that are at the ultimate forefront of professional studies on 'transitional labour markets' and 'flexicurity'.


Unemployment Benefits Versus Conditional Negative Income Taxes

Unemployment Benefits Versus Conditional Negative Income Taxes

Author: Mr.Dennis J. Snower

Publisher: International Monetary Fund

Published: 1995-07-01

Total Pages: 22

ISBN-13: 1451848641

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The paper analyzes the wage-employment effects of replacing unemployment benefits by negative income taxes. It first surveys the major equity and efficiency effects of unemployment benefits versus negative income taxes, and summarizes the salient features of many European unemployment benefit systems in this light. Second, it presents a simple theoretical model that focuses on the relative wage-employment effects of unemployment benefits versus negative income taxes. Finally, it provides some empirical groundwork for assessing this relative effect