Location: 368A Heady Hall

Title: The Effect of UI on Job Search Intensity

Abstract: While many studies have analyzed the effect of unemployment spells on job search behavior, little research has examined whether UI benefits affect job search intensity. The Department of Labor's (DOL) Benefit Accuracy Measurement (BAM) data is used to investigate whether a UI recipient has received the proper benefit payment and identifies source of administrative errors in UI programs. We apply the BAM data to investigate how job search intensity, measured as the number of searches in the survey week, responds to the cause of the unemployment spell, the current strength of the local labor market, the benefit level, weeks of remaining benefits, state job search requirements, worker skill level and prior wage, and the individual’s reservation wage. A double hurdle model evaluates how these factors affect whether and how intensively to search. We find that more generous unemployment benefits increase the likelihood of search, but do not affect job search intensity.