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Employers and Unemployment Insurance Take-Up

Author

Listed:
  • Marta Lachowska
  • Isaac Sorkin
  • Stephen A. Woodbury

Abstract

We quantify the employer's role in unemployment insurance (UI) take-up. Employer effects on claiming and appeals are substantial, and those effects are negatively correlated, consistent with appeals deterring claims. Low-wage workers are less likely to claim and more likely to have their claims appealed than median-wage workers. Employer effects help explain these income gradients, so equalizing employer effects on claiming would increase the progressivity of UI. Finally, the main source of targeting error in UI is that eligible workers do not claim.

Suggested Citation

  • Marta Lachowska & Isaac Sorkin & Stephen A. Woodbury, 2025. "Employers and Unemployment Insurance Take-Up," American Economic Review, American Economic Association, vol. 115(8), pages 2529-2573, August.
    • Handle: RePEc:aea:aecrev:v:115:y:2025:i:8:p:2529-73
    DOI: 10.1257/aer.20230195
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    References listed on IDEAS

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    1. Aaron Flaaen & Matthew D. Shapiro & Isaac Sorkin, 2019. "Reconsidering the Consequences of Worker Displacements: Firm versus Worker Perspective," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(2), pages 193-227, April.
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    Cited by:

    1. Martin Gervais & Roozbeh Hosseini & Lawrence Warren, 2025. "Unemployment Insurance, Wage Pass-Through, and Endogenous Take-Up," Working Papers 25-59, Center for Economic Studies, U.S. Census Bureau.

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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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