AN ECONOMETRIC ANALYSIS OF UNEMPLOYMENT INSURANCE BENEFIT ADEQUACY (RATIONING CONSTRAINTS, TOBIT MODELS).

Persistent Link:
http://hdl.handle.net/10150/183901
Title:
AN ECONOMETRIC ANALYSIS OF UNEMPLOYMENT INSURANCE BENEFIT ADEQUACY (RATIONING CONSTRAINTS, TOBIT MODELS).
Author:
O'LEARY, CHRISTOPHER JOSEPH.
Issue Date:
1986
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
Explicit parameterizations of labor 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. Results of these estimations are then used to compute triangle approximation and direct closed form solutions for labor market constraint compensation. Underemployment compensation estimates are generated and compared to actual and hypothetical payments which would accrue under the UI systems of representative states. Certain compensation results for overemployment are also offered. Where they are directly comparable, results from Tobit estimation of the basic labor supply relations are found to strictly dominate ordinary least squares (OLS) results in terms of efficiency. While the OLS and Tobit parameter estimates differ dramatically in most cases, the latter are consistent with the bulk of recent empirical labor supply research. A corollary purpose of estimating the several labor supply specifications is the search for an appropriate structure of preferences to be used in modeling the labor-leisure choice problem. Direct likelihood ratio tests yielded no best form, but suggested that more flexible parameterizations are to be desired. Results on compensation amounts tend to support accepted standards of UI benefit adequacy. For all levels of unemployment the direct compensation results suggested that "one-half gross wage replacement" would slightly overcompensate individuals from a utility based perspective.
Type:
text; Dissertation-Reproduction (electronic)
Keywords:
Unemployment insurance.; Labor supply -- Effect of income maintenance programs on.
Degree Name:
Ph.D.
Degree Level:
doctoral
Degree Program:
Economics; Graduate College
Degree Grantor:
University of Arizona
Advisor:
Oaxaca, Ronald

Full metadata record

DC FieldValue Language
dc.language.isoenen_US
dc.titleAN ECONOMETRIC ANALYSIS OF UNEMPLOYMENT INSURANCE BENEFIT ADEQUACY (RATIONING CONSTRAINTS, TOBIT MODELS).en_US
dc.creatorO'LEARY, CHRISTOPHER JOSEPH.en_US
dc.contributor.authorO'LEARY, CHRISTOPHER JOSEPH.en_US
dc.date.issued1986en_US
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractExplicit parameterizations of labor 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. Results of these estimations are then used to compute triangle approximation and direct closed form solutions for labor market constraint compensation. Underemployment compensation estimates are generated and compared to actual and hypothetical payments which would accrue under the UI systems of representative states. Certain compensation results for overemployment are also offered. Where they are directly comparable, results from Tobit estimation of the basic labor supply relations are found to strictly dominate ordinary least squares (OLS) results in terms of efficiency. While the OLS and Tobit parameter estimates differ dramatically in most cases, the latter are consistent with the bulk of recent empirical labor supply research. A corollary purpose of estimating the several labor supply specifications is the search for an appropriate structure of preferences to be used in modeling the labor-leisure choice problem. Direct likelihood ratio tests yielded no best form, but suggested that more flexible parameterizations are to be desired. Results on compensation amounts tend to support accepted standards of UI benefit adequacy. For all levels of unemployment the direct compensation results suggested that "one-half gross wage replacement" would slightly overcompensate individuals from a utility based perspective.en_US
dc.typetexten_US
dc.typeDissertation-Reproduction (electronic)en_US
dc.subjectUnemployment insurance.en_US
dc.subjectLabor supply -- Effect of income maintenance programs on.en_US
thesis.degree.namePh.D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.disciplineEconomicsen_US
thesis.degree.disciplineGraduate Collegeen_US
thesis.degree.grantorUniversity of Arizonaen_US
dc.contributor.advisorOaxaca, Ronalden_US
dc.contributor.committeememberRansom, Michaelen_US
dc.contributor.committeememberTaylor, Lesteren_US
dc.identifier.proquest8702072en_US
dc.identifier.oclc697810720en_US
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