The Effect Of The Unemployment Insurance Wage Replacement Rate On Reemployment Wages: A Dynamic Discrete Time Hazard Model With Unobserved Heterogeneity

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This study estimates the effect of the unemployment insurance wage replacement rate on reemployment wages in the U.S


Furthermore, the wage replacement rate depresses the prospect of finding full-time work while increasing the prospect of finding part-time work.

I find that reemployment wages decrease with the unemployment insurance wage replacement rate

I model employment search behavior in a dynamic discrete time hazard setting with three possible outcomes finding a full-time job, finding a part-time job, or staying unemployed continuing the job search

Using the sample of men in the 1996 and 2001 Surveys of Income and Program Participation