Abstract
This paper presents new evidence on how UI (Unemployment Insurance) benefit pay frequencies affect the job search behaviors of UI claimants in the United States. By exploiting quasi-experimental variations in states' benefit pay schedules, I find that switching from biweekly to weekly pay significantly increases UI claimants' unemployment durations. This observed effect can be partly rationalized by the more frequent end-of-the-month positive benefit shocks under weekly pay schedules. I conclude that the previously overlooked policy parameter, benefit pay frequency, has important effects on the job search behaviors of UI claimants.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have