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Examining The Externality Of Unemployment Insurance On Children'S Educational Achievement

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  • Krishna Regmi

Abstract

I exploit differences in the generosity of unemployment insurance (UI) benefits across states and over time to investigate the link between UI and children's academic achievement. Estimates show that a 1% increase in maximum weekly UI benefits reduces the probability that a child repeats a grade by around 0.03 percentage points. The effect is concentrated among children of low‐ and middle‐income families. This paper's findings, which are the first in the literature to show evidence of a positive effect of UI on children's educational outcomes, provide insight into the role of UI in the human capital accumulation of children. (JEL I20, I38, J65)

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  • Krishna Regmi, 2019. "Examining The Externality Of Unemployment Insurance On Children'S Educational Achievement," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 172-187, January.
    • Handle: RePEc:bla:ecinqu:v:57:y:2019:i:1:p:172-187
    DOI: 10.1111/ecin.12733
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    References listed on IDEAS

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    Cited by:

    1. Regmi, Krishna & J. Henderson, Daniel, 2019. "Labor demand shocks at birth and cognitive achievement during childhood," Economics of Education Review, Elsevier, vol. 73(C).
    2. Hansen, Kerstin F. & Stutzer, Alois, 2022. "Parental unemployment, social insurance and child well-being across countries," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 600-617.
    3. Hamid Noghanibehambari & Mahmoud Salari, 2020. "Health benefits of social insurance," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1813-1822, December.
    4. Acton, Riley & Khafaji-King, Jo Al & Smith, Austin C., 2023. "Suspended from Work and School? Impacts of Layoff Events and Unemployment Insurance on Student Disciplinary Incidence," IZA Discussion Papers 16423, Institute of Labor Economics (IZA).
    5. Regmi, Krishna, 2020. "The effect of the minimum wage on children’s cognitive achievement," Labour Economics, Elsevier, vol. 65(C).

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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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