Effects of Unemployment Insurance Duration on Nonemployment, Wages, and Health

Existing research shows that unemployment insurance (UI) subsidizes job search. In this paper, we provide new evidence that extending UI duration creates labor market responses that vary by gender, with female workers driving previously observed wage gains. Using linked administrative labor and health data for Austrian workers, we show that female workers eligible for 9 additional weeks of UI benefits are more likely to change occupations and pivot away from physically demanding jobs. Outside of the labor market, these workers fill fewer opioid and antidepressant prescriptions and are less likely to claim disability, as compared to ineligible unemployed female workers.