The Effects of Unemployment Insurance Benefits on the Behaviors of Displaced Workers

Date of Award

2019

Document Type

Thesis

Degree Name

Bachelor of Arts

Department

Economics

First Advisor

Monica Das

Abstract

This paper examines the effects of unemployment insurance benefits on UI participation, unemployment inflow, unemployment duration, and job search intensity, by investigating the 16-weeks cut in potential Unemployment Insurance benefit in Missouri in 2011. The RDD estimates found a 16-weeks reduction in UI potential benefit duration decreases the number of new UI claimants by about 1032 and the insured unemployment rate by 0.452%. The DID model of married UI claimants indicates a 5 weeks deduction in unemployment duration after the benefits cut in Missouri. No significant effects were found in the job search intensity model.

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