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- Title
ENTITLEMENT EFFECTS, UNEMPLOYMENT INSURANCE AND EMPLOYMENT DECISIONS.
- Authors
Hamermesh, Daniel S.
- Abstract
Many studies have identified the work disincentive effects of unemployment insurance. This paper points out the entitlement effect of this and other social insurance programs on employment, as the risks of labor-market participation are reduced by the existence of unemployment benefits. This employment-increasing effect can offset the disincentive effect, with the net impact on employment becoming an empirical issue. Using data on a sample of married women for 1971, we find that on net there is a slight negative effect on employment of higher unemployment insurance benefits. The entitlement effect on employment is, though, generally positive and significant, suggesting that the provisions of social insurance induce increased labor-force participation among women who otherwise would remain out of the labor force.
- Subjects
UNEMPLOYMENT insurance; SOCIAL security; EMPLOYMENT of married women; ECONOMICS
- Publication
Economic Inquiry, 1979, Vol 17, Issue 3, p317
- ISSN
0095-2583
- Publication type
Article
- DOI
10.1111/j.1465-7295.1979.tb00532.x