Andrew Johnston

________________________________________________________________________________________________________________________________

Andrew Johnston Economics

Andrew Johnston

Assistant Professor of Economics, University of California at Merced

Ph.D. in Applied Economics from The Wharton School, University of Pennsylvania

Fields: Public Economics, Labor Economics, Econometrics, Personnel Economics

Interests: Unemployment Insurance, Taxation, Compensation, Teacher Quality, Parent Absence

Contact: acjohnston (at) ucmerced (dot) edu

Curriculum vitae

________________________________________________________________________________________________________________________________

Working Papers:

Unemployment Insurance Taxes and Labor Demand: Quasi-Experimental Evidence from Administrative Data, Submitted [link here] [online appendix]

States raise tax rates on firms that lay off workers, a practice that pays for unemployment (UI) benefits. Since rates respond to layoffs, taxes are highest for troubled firms after downturns, potentially reducing labor demand during recoveries. I assess the effect of UI tax hikes among distressed firms leveraging a kink in the tax formula with full-population records from Florida. Higher taxes reduce hiring and employment, with larger effects for firms in duress. In contrast, I find little evidence that penalties deter layoffs. These responses are consistent with a model of cash-constrained firms and suggest unanticipated costs of UI provision.

Publications:

Potential Unemployment Insurance Duration and Labor Supply: Evidence from a Benefit Cut (with Alexandre Mas), Forthcoming at Journal of Political Economy[link here]

In this paper we examine how an unanticipated cut in potential unemployment insurance (UI) duration, which reduced maximum duration in Missouri by 16 weeks, affected the search behavior of UI recipients and the aggregate labor market. Using a regression discontinuity design (RDD), we estimate that a one-month reduction in maximum duration is associated with 15 fewer days of UI receipt and 8.6 fewer days of nonemployment. We use the estimated change in the UI survivor function to simulate the change in the time path of the unemployment rate, assuming that moves from UI into employment do not displace other jobseekers, or lead to other spillover effects. The simulated response closely approximates the estimated change in the unemployment rate following the benefit cut, suggesting that even in a period of high unemployment, the labor market was able to absorb this influx of workers without crowding out other jobseekers.

The Effect of Unemployment Benefits on the Duration of Unemployment Insurance Receipt: New Evidence from a Regression Kink Design in Missouri, 2003-2013 (with David Card, Pauline Leung, Alexandre Mas, and Zhuan Pei), American Economic Review: P&P, 2015. [link here]

We provide new evidence on the elasticity of unemployment insurance weekly benefit amount on unemployment insurance spells based on administrative data from the state of Missouri covering 2003-2013.  Identification comes from a regression kink design that exploits the quasi-experimental variation around the kink in the UI benefit schedule.  We find that unemployment durations are more responsive to benefit levels during the recession and its aftermath, with an elasticity of about 0.9 as compared to 0.35 pre-recession.

Coming Soon:

Teacher Utility, Optimal Teacher Compensation, and Separating Equilibria: Evidence from a Discrete Choice Experiment

Parent Absence and Human Capital Formation: Evidence from Quasi-Random Deployments (with Richard Patterson and David Lyle)




Johnston Wharton Graduation Economics



 

Ċ
Andrew Johnston,
Jan 16, 2017, 7:23 PM
Ċ
Andrew Johnston,
Nov 8, 2016, 11:35 AM
Ċ
Andrew Johnston,
Sep 4, 2017, 11:30 AM
ć
Andrew Johnston,
Dec 4, 2012, 1:49 PM
Ċ
Andrew Johnston,
Sep 4, 2017, 11:30 AM
Comments