The system of Unemployment Insurance (UI) financing in the US draws its funds from a payroll tax on employers and varies the tax rate according to the individual employer's layoff history. There exists extensive evidence on the effect of this so-called experience rated tax on layoff decisions. However, since firms are liable for each dollar of regular UI benefits paid to laid off former employees, experience rating may also affect recall behavior. The present study therefore measures the effect of the UI financing system on the duration of unemployment. Using duration data is essential since tax charges to the firm vary over the duration of unemployment spells. Empirical results based on data with various sources of variation suggest that higher layoff tax costs shorten the duration of recall unemployment.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by Commission of the EEC - Ecofin, Country Studies in its series Papers with number
143.
Length: 23 pages Date of creation: 1999 Date of revision: Handle: RePEc:fth:eeccou:143
Contact details of provider: Postal: The Directorate-General for Economic and Financial Affairs, Commission of the European Communities, 200 rue e la Loi, 1049 Brussels, Belgium. Fax: +32 2 299.35.78 Email: Web page: http://europa.eu/comm/economy_finance/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Thomas Krichel).
Find related papers by JEL classification: J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.: