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In ow into Unemployment: Employment Spells and Unemployment Insurance

Author

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  • Stepan Jurajda

    (CERGE-EI)

Abstract

This paper uses U.S. micro level data on employment durations to quantify the effect of potential Unemployment Insurance (UI) entitlement on job separations. Economic theory motivates estimation of a competing risk hazard model for quits and layoffs. The estimation procedure simultaneously allows for unobserved heterogeneity, defective risks and sample selection into future spells. It also uses alternative assumptions about agents' ability to determine eligibility for future UI claims. Empirical results suggest that being entitled to UI compensation raises the layoff hazard, but workers with higher levels of potential UI entitlement do not appear to be more likely to get laid off.

Suggested Citation

  • Stepan Jurajda, 2001. "In ow into Unemployment: Employment Spells and Unemployment Insurance," Labor and Demography 0012008, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0012008
    Note: Type of Document - Acrobat PDF; pages: 39 ; figures: included
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/0012/0012008.pdf
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    References listed on IDEAS

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    Cited by:

    1. Stepan Jurajda, 1999. "Unemployment Outflow and Unemployment Insurance Taxes," CERGE-EI Working Papers wp143, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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    More about this item

    Keywords

    Employment durations; Unemployment insurance; Unmeasured heterogeneity; Defective risks; Sample selection.;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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