Institutional Affiliation: Cornell University
|Comment on "New Data for Answering Old Questions Regarding Employee Stock Options"|
in Labor in the New Economy, Katharine G. Abraham, James R. Spletzer, and Michael Harper, editors
|The Long-Term Effects of a Generous Income Support Program: Unemployment Insurance in New Brunswick and Maine, 1940-1991|
with Peter Kuhn: w11932
Using data spanning a half century for adjacent jurisdictions in the U.S. and Canada, we study the long-term effects of a very generous unemployment insurance (UI)program on weeks worked. We find large effects. For example, in 1990, about 6 percent of employed men in Maine's northernmost counties worked fewer than 26 weeks per year; just across the border in New Brunswick that figure was over 20 percent. According to our estimates, New Brunswick's much more generous UI system accounts for about two thirds of this differential. Even greater effects are found among women and less-educated men. We argue that our longer-run, crossnational perspective generates more substantial estimates of program effects because it captures workers' abilities to make a wider variety of adjustments to programs...
Published: Kuhn, Peter and Chris Riddell. "The Long-Run Effects of Unemployment Insurance: Evidence from New Brunswick and Maine, 1940-1991." Industrial and Labor Relations Review 63, 2 (January 2010): 183-204.