Unemployment benefits impact job search behavior in Canadian men.
The study looked at how unemployment benefits and job availability affect how long men in Canada stay unemployed. They used data from Canadian men between 1975 and 1980. They found that the longer someone is unemployed, the less likely they are to find a job, unless their unemployment benefits decrease over time. When benefits decrease, people are more willing to accept job offers or search harder for work. These results were consistent across different ways of looking at the data.