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Repeat Use of Unemployment Insurance

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  • Bruce D. Meyer
  • Dan T. Rosenbaum

Abstract

We examine the extent to which unemployment insurance (UI) insures workers against unforeseen events or subsidizes firms and workers engaged in temporary layoffs. Our main source of data is a five-year panel of UI administrative records from five states. While most claimants receive UI only once during this period, nearly 40% of claims go to those individuals with three or more years of receipt during the five-year period. Most repeat recipients are concentrated in seasonal industries and are laid off by the same employer each time. We also find that middle-aged and high-paid workers are more likely to be repeat recipients, suggesting that workers in bad jobs are not the individuals who repeatedly receive UI.

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Paper provided by Institute for Policy Resarch at Northwestern University in its series IPR working papers with number 95-24.

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Handle: RePEc:wop:nwuipr:95-24

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References

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  1. David T. Ellwood, 1986. "Targeting "Would-Be" Long-Term Recipients of AFDC," Mathematica Policy Research Reports 652, Mathematica Policy Research.
  2. Blank, Rebecca M & Card, David E, 1991. "Recent Trends in Insured and Uninsured Unemployment: Is There an Explanation?," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 1157-89, November.
  3. Blank, Rebecca M & Ruggles, Patricia, 1994. "Short-Term Recidivism among Public-Assistance Recipients," American Economic Review, American Economic Association, vol. 84(2), pages 49-53, May.
  4. Bruce D. Meyer & Dan T. Rosenbaum, 1996. "Repeat Use of Unemployment Insurance," NBER Working Papers 5423, National Bureau of Economic Research, Inc.
  5. Anderson, Patricia M, 1993. "Linear Adjustment Costs and Seasonal Labor Demand: Evidence from Retail Trade Firms," The Quarterly Journal of Economics, MIT Press, vol. 108(4), pages 1015-42, November.
  6. Card, David & Levine, Phillip B., 1994. "Unemployment insurance taxes and the cyclical and seasonal properties of unemployment," Journal of Public Economics, Elsevier, vol. 53(1), pages 1-29, January.
  7. Miles Corak, 1993. "Unemployment Insurance Once Again: The Incidence of Repeat Participation in the Canadian UI Program," Canadian Public Policy, University of Toronto Press, vol. 19(2), pages 162-176, June.
  8. 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.
  9. Topel, Robert H, 1983. "On Layoffs and Unemployment Insurance," American Economic Review, American Economic Association, vol. 73(4), pages 541-59, September.
  10. Feldstein, Martin S, 1976. "Temporary Layoffs in the Theory of Unemployment," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 937-57, October.
  11. Martin Neil Bailey, 1977. "Unemployment insurance as insurance for workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(4), pages 495-504, July.
  12. Patricia M. Anderson & Bruce D. Meyer, 1993. "The Unemployment Insurance Payroll Tax and Interindustry and Interfirm Subsidies," NBER Chapters, in: Tax Policy and the Economy, Volume 7, pages 111-144 National Bureau of Economic Research, Inc.
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Cited by:
  1. Card, David & Levine, Phillip B., 2000. "Extended benefits and the duration of UI spells: evidence from the New Jersey extended benefit program," Journal of Public Economics, Elsevier, vol. 78(1-2), pages 107-138, October.
  2. Fernando Coloma, 1996. "Seguro de Desempleo: Teoría, Evidencia y una Propuesta," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 33(99), pages 295-320.
  3. Bruce D. Meyer & Dan T. Rosenbaum, 1996. "Repeat Use of Unemployment Insurance," NBER Working Papers 5423, National Bureau of Economic Research, Inc.
  4. Katherine Baicker & Claudia Goldin & Lawrence F. Katz, 1998. "A Distinctive System: Origins and Impact of U.S. Unemployment Compensation," NBER Chapters, in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 227-264 National Bureau of Economic Research, Inc.
  5. Katherine Baicker & Marit M. Rehavi, 2004. "Policy Watch: Trade Adjustment Assistance," Journal of Economic Perspectives, American Economic Association, vol. 18(2), pages 239-255, Spring.
  6. 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.
  7. Alan B. Krueger & Bruce D. Meyer, 2002. "Labor Supply Effects of Social Insurance," NBER Working Papers 9014, National Bureau of Economic Research, Inc.
  8. Corak, Miles & Gustafsson, Björn Anders & Österberg, Torun, 2000. "Intergenerational Influences on the Receipt of Unemployment Insurance in Canada and Sweden," IZA Discussion Papers 184, Institute for the Study of Labor (IZA).
  9. Thomas Lemieux & W. Bentley MacLeod, 1997. "Supply Side Hysteresis: The Case of the Canadian Unemployment Insurance System," Boston College Working Papers in Economics 340., Boston College Department of Economics.
  10. Feldstein, Martin & Altman, Dan, 2007. "Unemployment Insurance Savings Accounts," Scholarly Articles 2960185, Harvard University Department of Economics.

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