@article{CaliendoTatsiramosUhlendorff2013, author = {Caliendo, Marco and Tatsiramos, Konstantinos and Uhlendorff, Arne}, title = {Benefit duration, unemployment duration and job match quality aregression-discontinuity approach}, series = {Journal of applied econometrics}, volume = {28}, journal = {Journal of applied econometrics}, number = {4}, publisher = {Wiley-Blackwell}, address = {Hoboken}, issn = {0883-7252}, doi = {10.1002/jae.2293}, pages = {604 -- 627}, year = {2013}, abstract = {We use a sharp discontinuity in the maximum duration of benefit entitlement to identify the effect of extended benefit duration on unemployment duration and post-unemployment outcomes (employment stability and re-employment wages). We address dynamic selection, which may arise even under an initially random assignment to treatment, estimating a bivariate discrete-time hazard model jointly with a wage equation and correlated unobservables. Owing to the non-stationarity of job search behavior, we find heterogeneous effects of extended benefit duration on the re-employment hazard and on job match quality. Our results suggest that the unemployed who find a job close to and after benefit exhaustion experience less stable employment patterns and receive lower re-employment wages compared to their counterparts who receive extended benefits and exit unemployment in the same period. These results are found to be significant for men but not for women.}, language = {en} }