Portal de Periódicos da CAPES

Unemployment Insurance, Income Taxation, and Duration of Unemployment: Evidence from Georgia

1979; Wiley; Volume: 45; Issue: 3 Linguagem: Inglês

10.2307/1057476

2325-8012

Floyd C. Newton, Harvey S. Rosen,

Monetary Policy and Economic Impact

The recent economic experience of the United States has been characterized by high rates of unemployment and large increases in unemployment insurance benefits. There is disagreement as to how much of current unemployment is a consequence of the unemployment insurance (UI) system.1 A number of econometric studies of the issue have been completed [2; 3; 4; 5; and 6], but due to certain limitations in their data and method, none can be regarded as definitive. The purpose of the present essay is to provide some alternative estimates of the effect of UI on duration of unemployment. A theoretical model similar in spirit to that used by a number of earlier investigators is employed, but different data sets and estimation techniques are used.