The impact of unemployment insurance on the job match quality: A quantile regression approach

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7 Citations (Scopus)

Abstract

This paper investigates the impact of unemployment insurance (UI) generosity on the distribution of the match starting wage and tenure. We show evidence of a positive shift in the location (mean) and scale (variance) of both variables: more generous UI increases expected starting wage and tenure, and this impact is greater at the highest quantiles. In this sense, more generous UI reduces the thickness of the lower tail of match quality (shorter and lower paid jobs), and, at the same time, increases the quality of matches available to all workers (the location effect on match duration and wages). These results can be seen as favorable evidence of match quality gains from UI generosity.

Original languageEnglish
Pages (from-to)905-919
Number of pages15
JournalEmpirical Economics
Volume31
Issue number4
DOIs
Publication statusPublished - 1 Nov 2006

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