Duration analysis of unemployment benefit policy changes

Paper Title:

Causal Duration Analysis with Diff-in-Diff

Published on:

8 May 2024

Primary Category:

Econometrics

Paper Authors:

Ben Deaner,

Hyejin Ku

Bullets

Key Details

•

Proposes duration diff-in-diff to avoid bias in standard diff-in-diff with duration data

•

Allows flexible modeling while retaining simplicity and transparency

•

Applies methods to Austrian unemployment policy, avoids specifying hazard model

•

Finds significant positive impact on duration, parallel trends not rejected

Explore the topics in this paper

cross-cohort-design

difference-in-differences

duration-modeling

policy-analysis

unemployment-benefits

AI generated summary

Duration analysis of unemployment benefit policy changes

This paper proposes methods to adapt difference-in-differences analysis to settings with duration outcomes, which indicate whether an individual has entered an absorbing state. It retains the simplicity of diff-in-diff while avoiding bias. The approach is applied to study an Austrian policy extending unemployment benefits, using a transparent cross-cohort design.