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The Effect of Unemployment Benefit Pay Frequency on UI Claimants' Job Search Behaviors

Author

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  • Zhang, Guangli

    (Sinquefield Center for Applied Economic Research, Saint Louis University)

Abstract

This paper presents new evidence on how UI (Unemployment Insurance) benefit pay frequencies affect the job search behaviors of UI claimants in the United States. By exploiting quasi-experimental variations in states' benefit pay schedules, I find that switching from biweekly to weekly pay significantly increases UI claimants' unemployment durations. This observed effect can be partly rationalized by the more frequent end-of-the-month positive benefit shocks under weekly pay schedules. I conclude that the previously overlooked policy parameter, benefit pay frequency, has important effects on the job search behaviors of UI claimants.

Suggested Citation

  • Zhang, Guangli, 2021. "The Effect of Unemployment Benefit Pay Frequency on UI Claimants' Job Search Behaviors," Working Papers 21-3, Sinquefield Center for Applied Economic Research, Saint Louis University.
    • Handle: RePEc:ris:sluecr:2021_003
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    References listed on IDEAS

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    More about this item

    Keywords

    unemployment insurance; natural experiment; benefit pay frequency;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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