Christopher J. O'Leary

Do bonus offers shorten unemployment insurance spells? results from the washington experiment

Unemployment insurance is intended to reduce hardship by providing labor force members with partial wage replacement during periods of involuntary unemployment. However, in performing this income maintenance function, unemployment insurance may prolong spells of unemployment. Evidence from a field experiment conducted in Illinois in 1984 suggested that offering unemployment insurance claimants a modest cash bonus for rapid reemployment would increase the speed of return to work and reduce program costs. In 1988 a similar experiment, examining several different bonus offers, was conducted in the state of Washington. Evidence from the Washington experiment indicates that bonus offers do change job seeking behavior, but that only relatively generous bonus offers-about six times the weekly benefit amount-should be expected to significantly change the behavior of people eligible for unemployment benefits.

Labor Exchange Policy in the United States

This book describes the evolution of labor exchange policy in the United States, summarizes the major findings about the effectiveness of labor exchange services, and offers reflections on the future for labor exchange policy. In addition, the contributors provide an international perspective on job brokerage functions and a discussion on the appropriate role for governments in helping job seekers and employers make the proper job match.

Public Employment Policy for an Aging Workforce

Americans are working longer. For many older workers, employment earnings are essential for self-sufficiency. When older workers are forced to change jobs, they suffer bigger earnings losses and take longer to find new jobs than prime-age workers. Unfortunately, public workforce policy has not adapted to serve older workers. Our strategic survey of published research evidence and government statistics suggests a variety of ways that employment programs could be adapted to benefit older workers. In this article, we examine the changing age composition of the labor force, the employment patterns of older workers, and offer specific improvements in public employment policy for an aging workforce.

Evaluating Public Employment Programs with Field Experiments: A Survey of American Evidence

Research in the 1970s based on observational data provided evidence consistent with predictions from economic theory that paying unemployment insurance (UI) benefits to involuntarily jobless workers prolongs unemployment. However, some scholars also reported estimates that the additional time spent in subsidized job search was productive. That is, UI receipt tended to raise reemployment wages after work search among the unemployed. A series of field experiments in the 1980s investigated positive incentives to overcome the work disincentive effects of UI. These were followed by experiments in the 1990s that evaluated the effects of restrictions on UI eligibility through stronger work search requirements and alternative uses of UI. The new century has seen some related field experiments in employment policy, and reexamination of the earlier experimental results. This paper reviews the experimental evidence and considers it in the context of the current federal-state UI system.

Estimating labour supply functions under the rationing constraints of over-and under-employment

In this study explicit parametrizations of labour supply are specified and estimated on a sample of single unattached individuals using data from the Panel Study of Income Dynamics, and a generalized tobit maximum likelihood method which is consistent under the assumption that employed hours are exogenous. The estimation methodology explicitly incorporates information on the existence and degree of over-employment and under-employment. For the cases examined it is found that increased generality in the representation of preference is to be desired when estimating labour supply. A surprising finding is that the labour supply responsiveness of a group of single American women who live alone and have no dependants is on a par with estimates for married women examined in earlier studies, and is significantly higher than estimated for American men.