Skip to main content
Other
An Event Study of UI Benefit Cuts: Evidence from North Carolina
(2015)
  • Brad J. Hershbein, W.E. Upjohn Institute
  • Christopher J. O'Leary, W.E. Upjohn Institute
Abstract

On July 1, 2013, North Carolina cut the maximum duration of UI benefits from 63 weeks (or 99 with EUC) to 19 weeks and the maximum weekly payout from $535 to $350. As of January 1, 2014, the EUC program ended nationwide and several states have cut maximum benefits to below 26 weeks. While several newspaper articles and blogs have offered descriptive evidence of the results of North Carolina’s policy change, there has been no rigorous and systematic analysis. Using synthetic control methods pioneered by Abadie, Diamond, and Hainmueller, and CPS data, we will investigate the impact of the UI cut on employment rates, labor force participation, and earnings for the state as a whole and for various demographic subgroups.

Publication Date
2015
Citation Information
Brad J. Hershbein and Christopher J. O'Leary. "An Event Study of UI Benefit Cuts: Evidence from North Carolina" (2015)
Available at: http://works.bepress.com/brad_hershbein/21/