Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

5-2020

Journal or Book Title

American Economic Journal: Economic Policy

Volume

12

Issue

2

First Page or Article ID Number

84

Last Page

114

DOI

10.1257/pol.20160439

Abstract

This study documents two potential biases in recent analyses of UI benefit extensions using boundary-based identification: bias from using county-level aggregates and bias from across-border policy spillovers. To examine the first bias, the analysis uses a regression discontinuity approach that accounts for measurement error in county-level aggregates. These results suggest much smaller effects than previous studies, casting doubt on the applicability of border-based designs. The analysis then shows substantial spillover effects of UI benefit duration on across-border work patterns, consistent with increased tightness in high-benefit states and providing evidence against a dominant vacancy reduction response to UI extensions.

JEL Classification

E24, E32, J22, J64, J65

Comments

This article is published as Dieterle, Steven, Otávio Bartalotti, and Quentin Brummet. 2020. "Revisiting the Effects of Unemployment Insurance Extensions on Unemployment: A Measurement-Error-Corrected Regression Discontinuity Approach." American Economic Journal: Economic Policy, 12 (2): 84-114. doi: 10.1257/pol.20160439. Posted with permission.

Copyright Owner

American Economic Association

Language

en

File Format

application/pdf

Working Paper

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