Figure 1 Unemployment duration elasticity and labour market conditions and Evidence Rev Econ Stud. 2016;83(3):1092-1124. doi:10.1093/restud/rdw009 behalf of The Review of Economic Studies Limited.

Notes: Figure 4 shows the national unemployment rate and the annual average change in the log of the statutory maximum UI weekly benefit for each year between 1986 and 2000 (taking a simple average across states each year). The correlation between these two variables is 0.45. and Evidence Rev Econ Stud. 2016;83(3):1092-1124. doi:10.1093/restud/rdw009 behalf of The Review of Economic Studies Limited.

Notes:Figure 5 shows the within-state change in the log of the statutory maximum UI weekly benefit amount and the within-state change in the state unemployment rate. Each point reports an annual within-state change in the log of the maximum UI weekly benefit amount and the within-state change in unemployment rate, where both measures are residuals from a regression of the raw measure on year fixed effects. The sample is all within- state changes for all years between 1986 and 2000 for all states in the analysis sample. The solid line in Figure 5 shows the fitted values from an unweighted OLS regression. The correlation between these variables is 0.01. The unemployment rate comes from the Bureau of Labour Statistics, and the statutory maximum UI benefit levels come from the Department of Labour. and Evidence Rev Econ Stud. 2016;83(3):1092-1124. doi:10.1093/restud/rdw009 behalf of The Review of Economic Studies Limited.

and Evidence Figure 6 Survival curves under high unemployment rate Rev Econ Stud. 2016;83(3):1092-1124. doi:10.1093/restud/rdw009 behalf of The Review of Economic Studies Limited.

Notes: Data are individual-level unemployment spells from the 1985–2000 SIPP. In Figure 6, the sample includes spells in states with unemployment rates above the median across states in the year of spell; Figure 7 includes below-median unemployment rates defined similarly. Each figure plots (Kaplan–Meier) survival curves for two groups of individuals based on whether or not the Average UI weekly benefit amount in an individual's state is above or below the overall sample median. The survival curves are adjusted following Chetty (2008), which parametrically adjusts for a “seam effect” by fitting a Cox proportional hazard model with a seam dummy and then recovering the baseline hazard. and Evidence Rev Econ Stud. 2016;83(3):1092-1124. doi:10.1093/restud/rdw009 behalf of The Review of Economic Studies Limited.