Unemployment insurance in the Great Recession
Edwards, Raymond George
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Many empirical studies of the effect of unemployment insurance on unemployment duration and job match quality use data from before 2000. These data exclude the recessions that occurred after the millennium change, in 2001-2002 and the Great Recession in 2007-2009. Given the persistent mass unemployment that characterized this decade, it is inappropriate to project these earlier results onto the current labor market. This thesis analyzes recent panels of the Survey of Income and Program Participation, ranging from 2001-2012, to measure the disincentive effects of unemployment insurance on job search. I find evidence of consumption smoothing by individuals in the poorest quintiles of the sample, while those in the richest quintiles exhibit waiting behavior.