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Jeudi 20 Décembre 2012

Camille LANDAIS (LSE, London)

"Market Externalities of Large Unemployment Insurance Extension Programs" avec Rafael LALIVE et Josef ZWEIMULLER

de 14 h à 15 h 30 en Salle S016 à l'INSEE-CREST,
15 Boulevard Gabriel Péri, 92245 MALAKOFF (Métro : Malakoff/Plateau de Vanves (Immeuble "Malakoff 2)).

Abstract This paper offers quasi experimental evidence of the existence of spillover effects of UI extensions using a unique program that extended unemployment benefits drastically for a subset of workers in selected regions of Austria. We use ineligible unemployed in treated regions, and a difference-in-difference identification strategy to control for preexisting differences across treated and untreated regions. We uncover the presence of important job search externalities: the probability of finding a job increases, while the average unemployment duration and the probability of long term unemployment decrease for untreated workers in treated regions as the search effort of treated workers plummets. These effects are the largest when the program intensity reaches its highest level, then decrease and disappear as the program is scaled down and finally interrupted. We use this evidence to discuss the relevance of different equilibrium search and matching models.