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Unequal use of social insurance benefits: the role of employers

Author

Listed:
  • Bana, Sarah
  • Bedard, Kelly
  • Rossin-Slater, Maya
  • Stearns, Jenna

Abstract

Disability Insurance (DI) and Paid Family Leave (PFL) programs are important sources of social insurance, but there is considerable inequality in benefit take-up, and little is known about the role of firms in determining benefit use. Using administrative data from California, we find that firms that pay higher earnings premiums also have substantially higher public DI and PFL take-up rates, and that this relationship is particularly strong among the lowest-earning workers within the firm. Our results suggest that changes in firm behavior may impact social insurance use, thus reducing an important dimension of inequality in America.

Suggested Citation

  • Bana, Sarah & Bedard, Kelly & Rossin-Slater, Maya & Stearns, Jenna, 2023. "Unequal use of social insurance benefits: the role of employers," LSE Research Online Documents on Economics 140585, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:140585
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    File URL: https://researchonline.lse.ac.uk/id/eprint/140585/
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    References listed on IDEAS

    as
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    More about this item

    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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