{"title":"Unemployment benefits and duration of registered unemployment in Russia: Regression kink design","authors":"V.K. Kopytok","doi":"10.31737/2221-2264-2022-54-2-8","DOIUrl":null,"url":null,"abstract":"The unemployment insurance (UI) system is one of the key labor market institutes. UI benefits allow to smooth consumption during unemployment. Moreover, people receiving UI benefits can search for a new position more selectively, and thus find a job that with more appropriate qualification requirements and salary. Nevertheless, generous UI benefits lead to a decrease in the intensity of job search and an increase in the duration of registered unemployment. The optimal UI system design balances these effects. This paper is based on administrative microdata on registered unemployment in Russia in 2019 (collected by The Federal Service for Labor and Employment of Russia) to estimate the causal effect of UI benefits on the duration of registered unemployment. Regression kink design and the maximum UI benefits levels are exploited to identify the causal effect. Estimated elasticities of UI duration with respect to average daily benefits are positive and significant with values from 0.2 to 5.3 due to specification which corresponds to the estimates obtained for other countries.","PeriodicalId":43676,"journal":{"name":"Zhurnal Novaya Ekonomicheskaya Assotsiatsiya-Journal of the New Economic Association","volume":null,"pages":null},"PeriodicalIF":0.3000,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Zhurnal Novaya Ekonomicheskaya Assotsiatsiya-Journal of the New Economic Association","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.31737/2221-2264-2022-54-2-8","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
The unemployment insurance (UI) system is one of the key labor market institutes. UI benefits allow to smooth consumption during unemployment. Moreover, people receiving UI benefits can search for a new position more selectively, and thus find a job that with more appropriate qualification requirements and salary. Nevertheless, generous UI benefits lead to a decrease in the intensity of job search and an increase in the duration of registered unemployment. The optimal UI system design balances these effects. This paper is based on administrative microdata on registered unemployment in Russia in 2019 (collected by The Federal Service for Labor and Employment of Russia) to estimate the causal effect of UI benefits on the duration of registered unemployment. Regression kink design and the maximum UI benefits levels are exploited to identify the causal effect. Estimated elasticities of UI duration with respect to average daily benefits are positive and significant with values from 0.2 to 5.3 due to specification which corresponds to the estimates obtained for other countries.
期刊介绍:
Key Journal''s objectives: bring together economists of different schools of thought across the Russian Federation; strengthen ties between Academy institutes, educational establishments and economic research centers; improve the quality of Russian economic research and education; integrate economic science and education; speed up the integration of Russian economic science in the global mainstream of economic research. The Journal publishes both theoretical and empirical articles, devoted to all aspects of economic science, which are of interest for wide range of specialists. It welcomes high-quality interdisciplinary projects and economic studies employing methodologies from other sciences such as physics, psychology, political science, etc. Special attention is paid to analyses of processes occurring in the Russian economy. Decisions about publishing of articles are based on a double-blind review process. Exceptions are short notes in the section "Hot Topic", which is usually formed by special invitations and after considerations of the Editorial Board. The only criterion to publish is the quality of the work (original approach, significance and substance of findings, clear presentation style). No decision to publish or reject an article will be influenced by the author belonging to whatever public movement or putting forward ideas advocated by whatever political movement. The Journal comes out four times a year, each issue consisting of 12 to 15 press sheets. Now it is published only in Russian. The English translations of the Journal issues are posted on the Journal website as open access resources.