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The Relative Effects of Unemployment Insurance Parameters on Transitional Labor Supply Decisions

Author

Listed:
  • Julie L. Hotchkiss

    (Georgia State University)

  • Robert E. Moore

    (Georgia State University)

Abstract

The paper examines the role unemployment insurance (UI) parameters play in transitional labor supply decisions of individuals searching for a job. This paper compares the impact of UI parameters to the impact of other demographic variables. It also compares the relative strength of the parameters to one another. A sequential ordered response model is specified to focus on the transitional employment decisions of searchers who are receiving UI. The results suggest that the tax rate is a viable policy tool for influencing labor supply during the job search process, and states may even experience a net savings through its decrease.

Suggested Citation

  • Julie L. Hotchkiss & Robert E. Moore, 1994. "The Relative Effects of Unemployment Insurance Parameters on Transitional Labor Supply Decisions," Eastern Economic Journal, Eastern Economic Association, vol. 20(1), pages 21-32, Winter.
    • Handle: RePEc:eej:eeconj:v:20:y:1994:i:1:p:21-32
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume20/V20N1P21_32.pdf
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    Citations

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    Cited by:

    1. Glismann, Hans H. & Schrader, Klaus, 2001. "Alternative Systeme der Arbeitslosenversicherung: das Beispiel der Vereinigten Staaten und des Vereinigten Königreichs," Kiel Working Papers 1032, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Keywords

    Employment; Labor Supply; Unemployment Insurance; Unemployment;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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