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The Impact of Unemployment Insurance Generosity on Match Quality Distribution
Álvaro A. Novo
J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment
J64 - Unemployment: Models, Duration, Incidence, and Job Search
J65 - Unemployment Insurance; Severance Pay; Plant Closings
This paper investigates the impact of unemployment insurance (UI) generosity on the distribution of match tenure. We show that more generous UI increases expected tenure, reducing the mass of the lower tail of match duration and increasing the duration of matches available. This impact is differentiated across education levels, with the larger benefits accruing to the less educated.