How Do UI Benefits Affect The Benefit Utilization Rate

THIS STUDY DEMONSTRATES THE USEFULNESS OF THE THEORETICAL MODEL OF FRICTIONAL UNEMPLOYMENT AS A GENERAL FRAMEWORK FOR ANALYZING FACTORS THAT AFFECT THE BENEFIT UTILIZATION RATE. DATA COLLECTED INDICATE THAT AGGREGATE LABOR MARKET DEMAND EXERTS A POWERFUL INFLUENCE ON BOTH THE DURATION OF UNEMPLOYMENT AND THE UI BENEFIT UTILIZATION RATE (PCT UI), A RELATIONSHIP HAVING RECEIVED LITTLE ATTENTION IN MOST JOB RESEARCH MODELS. ANOTHER FINDING HAVING POTENTIALLY IMPORTANT POLICY IMPLICATIONS IS THAT PERSONS WHO RECEIVE HIGHER LEVELS OF WEEKLY UI SUPPORT TEND TO UTILIZE A GREATER PROPORTION OF THE BENEFITS TO WHICH THEY ARE ENTITLED. THIS MAY INDICATE THAT THE INCOME MAINTENANCE OBJECTIVE OF UI WHICH ENCOURAGES AN OPTIMAL SEARCH FOR SUITABLE RE EMPLOYMENT IS BEING ACCOMPLISHED. PCT UI IS SEEN TO BE RELATED TO SUCH LABOR MARKET CHARACTERISTICS AS SEX, COLOR, AND OCCUPATION. TABLES.