TY  - RPRT
        AU  - Nekoei, Arash
AU  - Weber, Andrea
        TI  - Does Extending Unemployment Benefits Improve Job Quality?
        PY  - 2015/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9034
        UR  - https://www.iza.org/index.php/publications/dp9034
        AB  - Contrary to standard search model predictions, prior studies failed to estimate a positive effect of unemployment insurance (UI) on reemployment wages. This paper estimates a positive UI wage effect exploiting an age-based regression discontinuity in Austrian administrative data. A search model incorporating duration dependence determines the UI wage effect as the balance between two offsetting forces: UI causes agents to seek higher-wage jobs, but also reduces wages by lengthening unemployment. This implies a negative relationship between the UI unemployment duration and wage effects, which holds empirically both in our sample and across studies, reconciling disparate wage-effect estimates. Empirically, UI raises wages by improving reemployment firms' quality and attenuating wage drops.
        KW  - unemployment insurance
KW  - job-search
KW  - wages
        ER  -