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Research ArticleArticles

The Match Quality Gains from Unemployment Insurance

Mário Centeno
Journal of Human Resources, July 2004, XXXIX (3) 839-863; DOI: https://doi.org/10.3368/jhr.XXXIX.3.839
Mário Centeno
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Abstract

This paper assesses the benefits of unemployment insurance (UI) by measuring its effect in match quality. We note that UI generosity should affect the decision to match or not and should therefore have some effect on match quality. Using NLSY data, we analyze the relationship between postunemployment job tenure and measures of the state-level UI generosity and the unemployment rate at the time the job is started. We show that greater UI generosity leads to longer job tenure. Furthermore, we find some evidence that this effect is more pronounced during busts, UI having a limited dampening effect on the cyclical variation in match quality.

  • Received February 2002.
  • Accepted February 2003.

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Journal of Human Resources
Vol. XXXIX, Issue 3
1 Jul 2004
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The Match Quality Gains from Unemployment Insurance
Mário Centeno
Journal of Human Resources Jul 2004, XXXIX (3) 839-863; DOI: 10.3368/jhr.XXXIX.3.839

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The Match Quality Gains from Unemployment Insurance
Mário Centeno
Journal of Human Resources Jul 2004, XXXIX (3) 839-863; DOI: 10.3368/jhr.XXXIX.3.839
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