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This paper evaluates the impact of large changes in the duration of Unemployment Insurance (UI) in different economic environments on labor supply, job matches, and search behavior. The authors show that differences in eligibility thresholds by exact age give rise to a valid regression discontinuity design, which they implement using administrative data on the universe of new unemployment spells and career histories over twenty years from Germany. They find that increases in UI have small to modest effects on non-employment rates, a result robust over the business cycle and across demographic groups.
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