IDEAS home Printed from https://ideas.repec.org/a/aea/apandp/v112y2022p97-101.html

Unemployment Insurance Financing as a Uniform Payroll Tax

Author

Listed:
  • Sebastian Graves
  • Jonathon Hazell
  • Walker F. Lewis
  • Christina Patterson

Abstract

In the United States, unemployment insurance (UI) is financed by taxes levied on employers. We develop a model to decompose UI taxes into a firing tax component levied on firms that lay off workers, and a uniform payroll tax component levied on all firms regardless of their layoffs. We develop a novel methodology to measure the two components and document a number of facts about the uniform payroll tax component: it is large, accounting for just under half of UI taxes; it rises significantly after recessions; and it is more cyclical in states with poorly funded UI systems.

Suggested Citation

  • Sebastian Graves & Jonathon Hazell & Walker F. Lewis & Christina Patterson, 2022. "Unemployment Insurance Financing as a Uniform Payroll Tax," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 97-101, May.
    • Handle: RePEc:aea:apandp:v:112:y:2022:p:97-101
    DOI: 10.1257/pandp.20221072
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20221072
    Download Restriction: no
    File URL: https://doi.org/10.3886/E168661V1
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20221072.appx
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20221072.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/pandp.20221072?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lee, Cheuk Ling & Chong, Terence Tai Leung, 2024. "Distance to Abortion Facilities and Child Living Conditions-Implication of the Abortion Law Change in the United States," MPRA Paper 120640, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:apandp:v:112:y:2022:p:97-101. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.