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Suspended from work and school? Impacts of layoff events and unemployment insurance on student disciplinary incidence

Author

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  • Acton, Riley K.
  • King, Jo R.
  • Smith, Austin C.

Abstract

We examine the impact of local labor market shocks and state unemployment insurance (UI) policies on student discipline in U.S. public schools. Analyzing school-level discipline data and firm-level layoffs in 23 states, we find that layoffs have little effect on discipline rates on average. However, effects differ across the UI benefit distribution. At the lowest benefit level ($265/week), a mass layoff increases out-of-school suspensions by 5.1%, with effects dissipating as UI benefits increase. Effects are consistently largest for Black students – especially in predominantly White schools – resulting in increased racial disproportionality in school discipline following layoffs in low-UI states.

Suggested Citation

  • Acton, Riley K. & King, Jo R. & Smith, Austin C., 2026. "Suspended from work and school? Impacts of layoff events and unemployment insurance on student disciplinary incidence," Labour Economics, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:labeco:v:98:y:2026:i:c:s092753712500168x
    DOI: 10.1016/j.labeco.2025.102844
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    Keywords

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    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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