Bonuses to Workers and Employers to Reduce Unemployment: Randomized Trials in Illinois

Abstract

New claimants for Unemployment Insurance were randomly assigned to one of two experiments that were designed to hasten reemployment. In the first, a 500 dollar bonus was offered to claimants who obtained employment within eleven weeks. This experiment reduced the number of weeks of insured unemployment, averaged over all assigned claimants whether or not they participated, by more than one week. In the second experiment, the bonus was offered to the claimant's subsequent employer. This experiment reduced the weeks of insured unemployment for only one important group-white women--by about one week. Copyright 1987 by American Economic Association.

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