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Race, Ethnicity, and Nonpayment of Unemployment Insurance: The Role of the Employer

Author

Listed:
  • Marta Lachowska
  • Stephen A. Woodbury

Abstract

We examine worker-employer disputes over unemployment insurance (UI) claims and their relationship to benefit nonpayment. Administrative UI records allow us to use workers who file multiple claims to control for unobserved worker heterogeneity. We observe strong employer effects on whether claims are disputed, and weak evidence that employers dispute Black workers’ claims more often than White workers’ claims. But disputes are only weakly related to nonpayment, and nonpayment associated with employer disputes does not differ by race or ethnicity. We speculate that the UI agency mediates employer disputes to mitigate racial differences in UI nonpayment.

Suggested Citation

  • Marta Lachowska & Stephen A. Woodbury, 2026. "Race, Ethnicity, and Nonpayment of Unemployment Insurance: The Role of the Employer," AEA Papers and Proceedings, American Economic Association, vol. 116, pages 393-399, May.
    • Handle: RePEc:aea:apandp:v:116:y:2026:p:393-399
    DOI: 10.1257/pandp.20261094
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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • 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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