This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Unemployment Insurance Taxes and the Cyclical and Seasonal Properties of Unemployment

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
David Card
Phillip B. Levine

Additional information is available for the following registered author(s):

Abstract

We combine Current Population Survey microdata for 1979-1987 with a newly assembled database of tax rates for the Unemployment Insurance system to measure the effects of imperfect experience-rating on temporary layoffs and other types of unemployment. We find a strong negative association between the degree of experience-rating and the rate of temporary layoff unemployment, with the largest effect in recessionary years and the smallest effect in expansionary years. Increases in the degree of experience-rating are also associated with dampened seasonal fluctuations in temporary layoffs, particularly in construction and durable manufacturing. The correlation between the degree of experience-rating and the unemployment rate of permanent job losers is smaller but also negative, whereas the correlation with the unemployment Me of job quitters and re-entrants is negligible. Attempts to control for the endogeneity of unemployment insurance taxes are consistent with a causal interpretation of our findings.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.nber.org/papers/w4030.pdf
File Format: application/pdf
File Function:
Download Restriction: Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4030.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Mar 1992
Date of revision:
Handle: RePEc:nbr:nberwo:4030

Note: LS
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Email:
Web page: http://www.nber.org
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords:

Other versions of this item:

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.:
  1. Feldstein, Martin S, 1978. "The Effect of Unemployment Insurance on Temporary Layoff Unemployment," American Economic Review, American Economic Association, vol. 68(5), pages 834-46, December. [Downloadable!] (restricted)
  2. Bertola, Giuseppe, 1990. "Job security, employment and wages," European Economic Review, Elsevier, vol. 34(4), pages 851-879, June. [Downloadable!] (restricted)
  3. Brown, Eleanor P, 1986. "Unemployment Insurance Taxes and Cyclical Layoff Incentives," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 50-65, January. [Downloadable!] (restricted)
  4. Topel, Robert H, 1984. "Experience Rating of Unemployment Insurance and the Incidence of Unemployment," Journal of Law & Economics, University of Chicago Press, vol. 27(1), pages 61-90, April.
  5. Burdett, Kenneth & Wright, Randall, 1989. "Unemployment Insurance and Short-Time Compensation: The Effects on Layoffs, Hours per Worker, and Wages," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1479-96, December. [Downloadable!] (restricted)
  6. Angrist, J.D., 1991. "Linear Instrumental Variables Estimation Of Average Treatment Effects In Nonlinear Models," Harvard Institute of Economic Research Working Papers 1542, Harvard - Institute of Economic Research.
Full references

Cited by:
(explanations, 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.)

  1. Carl Davidson & Stephen A. Woodbury, 1997. "The Optimal Dole with Risk Aversion, Job Destruction, and Worker Heterogeneity," Staff Working Papers 97-47, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  2. Patricia M. Anderson & Bruce D. Meyer, 1994. "Unemployment Insurance Benefits and Takeup Rates," NBER Working Papers 4787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Patricia M. Anderson & Bruce D. Meyer, 1995. "The Incidence of a Firm-Varying Payroll Tax: The Case of Unemployment Insurance," NBER Working Papers 5201, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. L'Haridon, Olivier & Malherbet, Franck, 2002. "Unemployment Compensation Finance and Aggregate Employment Fluctuations," CEPR Discussion Papers 3614, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Roed,K. & Nordberg,M., 2001. "Temporary layoffs and the duration of unemployment," Memorandum 12/2001, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  6. Melanie Arntz & Ralf Wilke, . "Can public employment subsidies render the German construction sector weather proof?," Discussion Papers 09/06, University of Nottingham, School of Economics. [Downloadable!]
  7. L'Haridon, Olivier & Malherbe, Franck, 2008. "Employment protection reform in search economies," Les Cahiers de Recherche 910, HEC Paris. [Downloadable!]
    Other versions:
  8. Jurajda, Stepán, 2001. "Estimating the Effect of Unemployment Insurance Compensation on the Labor Market Histories of Displaced Workers," IZA Discussion Papers 294, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Patricia M. Anderson & Bruce D. Meyer, 1998. "Using a Natural Experiment to Estimate the Effects of the Unemployment Insurance Payroll Tax on Wages, Employment, Claims, and Denials," NBER Working Papers 6808, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Patricia M. Anderson & Bruce D. Meyer, 1994. "The Effects of Unemployment Insurance Taxes and Benefits on Layoffs Using Firm and Individual Data," NBER Working Papers 4960, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Š. Jurajda, 2004. "Recalls and unemployment insurance taxes," Applied Economics Letters, Taylor and Francis Journals, vol. 11(10), pages 651-656, August. [Downloadable!] (restricted)
  12. Patricia M. Anderson & Bruce D. Meyer, 2005. "Unemployment Insurance Tax Burdens and Benefits: Funding Family Leave and Reforming the Payroll Tax," Working Papers 0601, Harris School of Public Policy Studies, University of Chicago. [Downloadable!]
    Other versions:
  13. Christopher J. O'Leary & Robert A. Straits, 2000. "Intergovernmental Relations and Employment Policy: The United States Experience," Staff Working Papers 00-60, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  14. Bruce D. Meyer & Dan T. Rosenbaum, 1996. "Repeat Use of Unemployment Insurance," NBER Working Papers 5423, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  15. Rafael Lalive & Josef Zweimüller, . "Benefit Entitlement and the Labor Market: Evidence from a Large-Scale Policy Change," IEW - Working Papers iewwp105, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  16. Katherine Baicker & Claudia Goldin & Lawrence F. Katz, 1997. "A Distinctive System: Origins and Impact of U.S. Unemployment Compensation," NBER Working Papers 5889, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  17. Hans H. Glismann & Klaus Schrader, 2001. "Alternative Systeme der Arbeitslosenversicherung — Das Beispiel der Vereinigten Staaten und des Vereinigten Königreichs," Kiel Working Papers 1032, Kiel Institute for the World Economy. [Downloadable!]
  18. Stephen A. Woodbury, 2002. "Income Replacement and Reemployment Programs in Michigan and Neighboring States," Staff Working Papers 02-86, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  19. Alan B. Krueger & Bruce D. Meyer, 2002. "Labor Supply Effects of Social Insurance," NBER Working Papers 9014, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  20. Stepan Jurajda, 2001. "In ow into Unemployment: Employment Spells and Unemployment Insurance," Labor and Demography 0012008, EconWPA. [Downloadable!]
Statistics
Access and download statistics

Did you know? RePEc also has a blog.

This page was last updated on 2009-11-25.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.