Market Externalities of Large Unemployment Insurance Extension Programs
研究发现奥地利地区延长失业保险福利期限对劳动力市场产生市场外部性，非合格工人求职率更高、失业期更短，为优化失业保险政策提供参考。
We provide evidence that unemployment insurance affects equilibrium conditions in the labor market, which creates significant “market externalities.” We provide a framework for identification of such equilibrium effects and implement it using the Regional Extension Benefit Program (REBP) in Austria which extended the duration of UI benefits for a large group of eligible workers in selected regions of Austria. We show that non-eligible workers in REBP regions have higher job finding rates, lower unemployment durations, and a lower risk of long-term unemployment. We discuss the implications of our results for optimal UI policy.