Unemployment Insurance Experience Rating of Firms and Layoffs
AbstractThe US unemployment insurance system is experience rated. Firms using the system more often have to pay higher UI taxes in order to cover the additional burden imposed on the system. Experience rating introduces a tax on layoffs which is supposed to counterbalance the implicit layoff subsidy resulting from the UI system. In turn, this is expected to reduce excess layoffs. In reality, however, experience rating implies higher payroll taxes on the remaining workforce of firms experiencing layoffs. In a theoretical model, we show that because of the backward looking nature of experience rating and its incompleteness particularly for firms which have reached their top tax ratings, a world with imperfect experience rating can actually lead to more layoffs than would have occured had there been no experience rating at all.
Download InfoTo 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.
Bibliographic InfoPaper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 9615.
Date of creation: 1996
Date of revision:
Other versions of this item:
- Cremieux, P.Y. & Van Audenrode, M., 1996. "Unemployment Insurance Experience Rating of Firms and Layoffs," Papers 9615, Laval - Recherche en Politique Economique.
- E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
You can help add them by filling out this form.
reading lists or Wikipedia pages:Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanne Perron).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.