Replication data for: Paying to Avoid Recession: Using Reenlistment to Estimate the Cost of Unemployment

Principal Investigator(s): View help for Principal Investigator(s) Mark Borgschulte; Paco Martorell

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Project Citation:

Borgschulte, Mark, and Martorell, Paco. Replication data for: Paying to Avoid Recession: Using Reenlistment to Estimate the Cost of Unemployment. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113696V1

Project Description

Summary: This paper provides revealed-preference estimates of the monetary value to workers of a lower unemployment rate at the time of job separation. By examining the decision between reenlisting and exiting the military, we find that service members would sacrifice 1.5-2 percent in earnings to avoid a 1 percentage point increase in the home-state unemployment rate during job search. Comparing these quantities to realized earnings losses for those who separate suggests that the value of non-work time and other factors (e.g., private and public transfers) offset less than one-third of the earnings losses caused by exiting the military into a weak labor market.

Scope of Project

JEL Classification:
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      E32 Business Fluctuations; Cycles
      J31 Wage Level and Structure; Wage Differentials
      J45 Public Sector Labor Markets
      J64 Unemployment: Models, Duration, Incidence, and Job Search

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Published Versions

V1 [2019-10-12]

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