Unemployment Insurance Tax Burdens and Benefits: Funding Family Leave and Reforming the Payroll Tax
AbstractWe examine the distributional consequences of the Unemployment Insurance (UI) payroll tax. Applying the ability-to-pay principle of equity, the UI payroll tax is quite regressive, while applying the benefits principle makes the UI program look quite good. We then simulate a revenue-neutral increase of the UI tax base to the OASDI tax base level, which appears equity-enhancing under the ability-to-pay principle, but has mixed effects under the benefits principle. Finally, providing family leave within the UI system would maintain the regressivity that violates the ability-to-pay principle of equity, but would agree much better with the benefits principle.
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Bibliographic InfoPaper provided by Harris School of Public Policy Studies, University of Chicago in its series Working Papers with number 0601.
Date of creation: Dec 2005
Date of revision:
unemployment insurance; payroll tax; family leave;
Other versions of this item:
- Patricia M. Anderson & Bruce D. Meyer, 2003. "Unemployment Insurance Tax Burdens and Benefits: Funding Family Leave and Reforming the Payroll Tax," NBER Working Papers 10043, National Bureau of Economic Research, Inc.
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
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.:
- Anderson, Patricia M & Meyer, Bruce D, 1997. "Unemployment Insurance Takeup Rates and the After-Tax Value of Benefits," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 913-37, August.
- Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier.
- Robert Hutchens, 1981. "Distributional equity in the unemployment insurance system," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 34(3), pages 377-385, April.
- Amuedo-Dorantes, Catalina & Kimmel, Jean, 2005. "Moonlighting Behavior over the Business Cycle," IZA Discussion Papers 1671, Institute for the Study of Labor (IZA).
- Bruce D. Meyer & Wallace K. C. Mok & James X. Sullivan, 2009.
"The Under-Reporting of Transfers in Household Surveys: Its Nature and Consequences,"
0903, Harris School of Public Policy Studies, University of Chicago.
- Bruce D. Meyer & Wallace K. C. Mok & James X. Sullivan, 2009. "The Under-Reporting of Transfers in Household Surveys: Its Nature and Consequences," NBER Working Papers 15181, National Bureau of Economic Research, Inc.
- Catalina Amuedo-Dorantes & Jean Kimmel, 2009.
"Moonlighting Over The Business Cycle,"
Western Economic Association International, vol. 47(4), pages 754-765, October.
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