Reemployment Bonuses in the Unemployment Insurance System Evidence from Three Field Experiments

In the 1980s, the federal government sponsored several field experiments to evaluate alternative approaches to reducing voluntary unemployment and improving the functioning of the unemployment insurance (UI) system. Four of these experiments involved the offer of bonuses to encourage more rapid return to work by UI recipients. Other experiments to enhance work search and to encourage self-employment were also implemented. Some of these experiments emphasized the offer of "carrots" to encourage desired behavior, while other proffered "sticks." These two approaches are described more fully in later sections.