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The referenced papers (which aren't actually referenced) are hard to find.

I did find this though:

One of the best-known empirical results in public Önance and labor economics is the ìspikeî in the exit rate from unemployment around the expiration of jobless beneÖts (see e.g., Robert Mo¢ tt, 1985; Lawrence Katz and Bruce Meyer, 1990a; Katz and Meyer, 1990b). This sharp surge in the hazard rate is widely interpreted as evidence that recipients are waiting until their beneÖts run out to return to work

However, from the same paper:

Our main finding is that the way in which unemployment spells are measured has a large e§ect on the magnitude of the spike at exhaustion, both in existing studies and in our Austrian data...

We conclude that most job seekers in Austria are not waiting to return to work until their UI benefits are exhausted. Rather, a large fraction simply leave the unemployment registry once their benefits end and they are no longer required to register to maintain their eligibility for benefit

http://emlab.berkeley.edu/~card/papers/unemp-hazards.pdf



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