TY  - GEN
AB  - We document considerable scope of heterogeneity within the unemployed, especially when the unemployed are divided along eligibility and receipt of unemployment insurance (UI). We study the implications of this heterogeneity on UI’s insurance-incentive trade-off using a heterogeneous-agent job-search model capable of matching the wealth and income differences that distinguish UI recipients from non-recipients. Insurance benefits are larger for UI recipients who are predominantly wealth-poor. Meanwhile, incentive costs are non-monotonic in wealth because the poorest individuals, who value employment, exhibit weak responses. Differential elasticities imply that accounting for the composition of recipients is material to the evaluation of UI's insurance-incentive trade-off. <p><p>Replication package for peer-reviewed article published in American Economic Journal: Macroeconomics.
AD  - Bank of Canada
AD  - Bank of Canada
AU  - Birinci, Serdar
AU  - See, Kurt
DA  - 2023-06-23
DO  - 10.3886/E170261V1
DO  - DOI
ID  - 1191
LA  - eng
N2  - We document considerable scope of heterogeneity within the unemployed, especially when the unemployed are divided along eligibility and receipt of unemployment insurance (UI). We study the implications of this heterogeneity on UI’s insurance-incentive trade-off using a heterogeneous-agent job-search model capable of matching the wealth and income differences that distinguish UI recipients from non-recipients. Insurance benefits are larger for UI recipients who are predominantly wealth-poor. Meanwhile, incentive costs are non-monotonic in wealth because the poorest individuals, who value employment, exhibit weak responses. Differential elasticities imply that accounting for the composition of recipients is material to the evaluation of UI's insurance-incentive trade-off. <p><p>Replication package for peer-reviewed article published in American Economic Journal: Macroeconomics.
PB  - American Economic Association
PY  - 2023-06-23
T1  - Data and Code for: Labor Market Responses to Unemployment Insurance: The Role of Heterogeneity
TI  - Data and Code for: Labor Market Responses to Unemployment Insurance: The Role of Heterogeneity
Y1  - 2023-06-23
ER  -