Reemployment Bonuses, Unemployment Duration, and Job Match Quality

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ABSTRACT This study examines the impacts of reemployment bonus, the incentive payments to unemployment insurance recipients who find a job within a specified period of time, using Korean data. A sharp discontinuity in treatment assignment at age 55 identifies the effect of increased reemployment bonus on unemployment duration and on subsequent job duration. The results indicate that increases in reemployment bonus boost the job-finding hazards of the claimants early in unemployment spells by 20.0% to 37.8%. Additionally, employment stability is not significantly affected by increased bonus, which implies no negative influence of the bonus on subsequent job match quality. Keywords: Reemployment bonus; Unemployment insurance; Regression discontinuity JEL classification codes: C41; J64; J65
		PRESENTER Taehyun Ahn Sogang University, Seoul, Korea
		RESEARCH FIELDS Labor Economics, Self-Employment and Entrepreneurship, Economic Demography, Empirical Microeconomics
		DATE: 14 Oct 2016 (Friday)
		TIME: 4pm - 5.30pm
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903