New Ways of Evaluating State Unemployment Insurance
AbstractComparisons among state unemployment insurance systems can be misleading. Frequently quoted indicators of the generosity of their benefits, competitiveness, and adherence to the experience-rating principal are influenced by states' relative economic conditions, thereby obscuring underlying structural differences. Moreover, because the indicators are statewide averages, they obscure important intrastate differences in tax and benefit treatment across types of firms and workers. This article offers alternative indicators based on a simulation approach designed to alleviate these problems. The authors use the simulated experiences of representative workers and firms to compare 28 states and contrast the results with those obtained from more conventional indicators. Given the intricacy of the issues and the harsh trade-offs involved, it is not surprising that debates concerning state UI policy are so contentious. The authors point out that policymakers reviewing the simulations can gain insight into the nature of the trade-offs among policy goals entailed in various UI options. This may even help them to identify "win-win" situations, in which a policy innovation that furthers one goal simultaneously furthers another.
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Bibliographic InfoPaper provided by W.E. Upjohn Institute for Employment Research in its series Upjohn Working Papers and Journal Articles with number rtcjo1999.
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Note: Appears in New England Economic Review (March/April 1999): 15-40
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unemployment insurance; unemployment compensation; states; evaluation;
Other versions of this item:
- Robert Tannenwald & Christopher J. O'Leary & Wei-Jang Huang, 1999. "New ways of evaluating state unemployment insurance," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 15-40.
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
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.:
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Middlebury College Working Paper Series
0216, Middlebury College, Department of Economics.
- Peter Hans Matthews & Ivan Kandilov & Bradford Maxwell, 2002. "Interstate differences in insured unemployment: some recent evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 945-948.
- Christopher J. O'Leary & Stephen A. Wandner, 2000.
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Upjohn Working Papers and Journal Articles
00-61, W.E. Upjohn Institute for Employment Research.
- Christopher J. O'Leary & Stephen A. Wandner, 2001. "Unemployment Compensation and Older Workers," Book chapters authored by Upjohn Institute researchers, W.E. Upjohn Institute for Employment Research.
- Christopher J. O'Leary & Robert Tannenwald & Wei-Jang Huang & Pei Zhu, 2000. "Alternative Measures of State UI Systems," Upjohn Working Papers and Journal Articles 00-62, W.E. Upjohn Institute for Employment Research.
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