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Essays on Unemployment and Labor Supply.

Nekoei, Arash.

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Essays on Unemployment and Labor Supply.

Record Type:	Electronic resources : Monograph/item
Title/Author:	Essays on Unemployment and Labor Supply./
Author:	Nekoei, Arash.
Description:	166 p.
Notes:	Source: Dissertation Abstracts International, Volume: 75-10(E), Section: A.
Contained By:	Dissertation Abstracts International75-10A(E).
Subject:	Economic theory. -
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3626960
ISBN:	9781321020441

Essays on Unemployment and Labor Supply.
Nekoei, Arash.

Essays on Unemployment and Labor Supply. - 166 p.

Source: Dissertation Abstracts International, Volume: 75-10(E), Section: A.

Thesis (Ph.D.)--Harvard University, 2014.

This item must not be sold to any third party vendors.

Contrary to the predictions of standard reservation-wage search models, empirical studies consistently find that an extension of UI increases unemployment duration \textit{without} improving subsequent wages. Chapter 1 addresses this puzzle in two steps. First, using administrative data from Austria and an age-based regression discontinuity design, we show that an extension of UI eligibility by nine weeks increases the average reemployment wage by a statistically significant 0.5\%. We find that the UI effect on both unemployment durations and reemployment wages is larger for individuals with a high ex-ante likelihood of benefit exhaustion and for those laid off during local industry-specific downturns. Second, we show both theoretically and empirically that the UI effect on expected wage is determined by two offsetting forces: (i) agents on UI increase their reservation wages, which raises subsequent wages, but (ii) they also stay unemployed longer and thus experience a greater decrease in job opportunities, which reduces subsequent wages. Together, these results show that UI does have an economically significant impact on job quality consistent with theoretical predictions.

ISBN: 9781321020441Subjects--Topical Terms:

1556984
Economic theory.

Essays on Unemployment and Labor Supply.
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100 1 $a Nekoei, Arash. $3 3172893
245 1 0 $a Essays on Unemployment and Labor Supply.
300 $a 166 p.
500 $a Source: Dissertation Abstracts International, Volume: 75-10(E), Section: A.
500 $a Advisers: Raj Chetty; Lawrence Katz.
502 $a Thesis (Ph.D.)--Harvard University, 2014.
506 $a This item must not be sold to any third party vendors.
506 $a This item must not be added to any third party search indexes.
520 $a Contrary to the predictions of standard reservation-wage search models, empirical studies consistently find that an extension of UI increases unemployment duration \textit{without} improving subsequent wages. Chapter 1 addresses this puzzle in two steps. First, using administrative data from Austria and an age-based regression discontinuity design, we show that an extension of UI eligibility by nine weeks increases the average reemployment wage by a statistically significant 0.5\%. We find that the UI effect on both unemployment durations and reemployment wages is larger for individuals with a high ex-ante likelihood of benefit exhaustion and for those laid off during local industry-specific downturns. Second, we show both theoretically and empirically that the UI effect on expected wage is determined by two offsetting forces: (i) agents on UI increase their reservation wages, which raises subsequent wages, but (ii) they also stay unemployed longer and thus experience a greater decrease in job opportunities, which reduces subsequent wages. Together, these results show that UI does have an economically significant impact on job quality consistent with theoretical predictions.
520 $a Chapter 2 offers a dynamic view of unemployment to study the separation of workers from firms as well as their hiring. In my framework, layoffs stem from temporary wage rigidity and non-contactable productivity shocks. I show that the optimum allocation is realized when employers internalize not only the direct cost of layoff, i.e. expected UI benefits, but also two additional costs: (i) the uninsured cost of layoff (ii) the increase in unemployment rate due to lower effort from workers.
520 $a Are an immigrant's decisions affected in real time by her home country's economy? Chapter 3 examines this question by exploiting exchange rate variations as exogenous price shocks to immigrants' budget constraints. I find that in response to a $10$ percent dollar appreciation, an immigrant decreases her earnings by $0.92$ percent, mainly by reducing hours worked. The exchange rate effect is greater for recent immigrants, married immigrants with absent spouses, Mexicans close to the border, and immigrants from countries with higher remittance flows. A neo-classical interpretation of these findings suggests that the income effect exceeds the cross-substitution effect. Remittance targets offer an alternative explanation.
590 $a School code: 0084.
650 4 $a Economic theory. $3 1556984
650 4 $a Economics. $3 517137
690 $a 0511
690 $a 0501
710 2 $a Harvard University. $b Economics. $3 2049893
773 0 $t Dissertation Abstracts International $g 75-10A(E).
790 $a 0084
791 $a Ph.D.
792 $a 2014
793 $a English
856 4 0 $u http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3626960