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Unemployment Insurance in Survey and Administrative Data

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Abstract

Unemployment Insurance (UI) benefits were a central part of the social safety net during the Covid-19 recession. UI benefits, however, are severely understated in surveys. Using administrative tax data, we find that over half of UI benefits were missed in major survey data, with a greater understatement among low-income workers. As a result, 2020 official poverty rates were overstated by about 2 percentage points, and corrected poverty reached a six-decade low. We provide data to correct underreporting in surveys and show that, compared to UI benefits, the UI exclusion tax expenditure was less targeted at low incomes.

Suggested Citation

  • Jeff Larrimore & Jacob Mortenson & David Splinter, 2022. "Unemployment Insurance in Survey and Administrative Data," FEDS Notes 2022-07-05-2, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfn:2022-07-05-2
    DOI: 10.17016/2380-7172.3135
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    File URL: https://www.federalreserve.gov//econres/notes/feds-notes/unemployment-insurance-in-survey-and-administrative-data-20220705.htm
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    Cited by:

    1. Robert G. Valletta & Mary Yilma, 2024. "Enhanced Unemployment Insurance Benefits in the United States during COVID-19: Equity and Efficiency," Working Paper Series 2024-15, Federal Reserve Bank of San Francisco.
    2. Andreas Hornstein & Marios Karabarbounis & Andre Kurmann & Etienne Lale & Lien Ta, 2023. "Disincentive Effects of Unemployment Insurance Benefits," Working Paper 23-11, Federal Reserve Bank of Richmond.
    3. Larrimore, Jeff & Mortenson, Jacob & Splinter, David, 2023. "Earnings business cycles: The Covid recession, recovery, and policy response," Journal of Public Economics, Elsevier, vol. 225(C).
    4. Jonathan Heathcote & Fabrizio Perri & Giovanni Violante & Lichen Zhang, 2023. "More Unequal We Stand? Inequality Dynamics in the United States, 1967–2021," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 50, pages 235-266, October.
    5. Kuka, Elira & Stuart, Bryan A., 2025. "Racial inequality in unemployment insurance receipt," Journal of Public Economics, Elsevier, vol. 247(C).
    6. Corinth, Kevin & Larrimore, Jeff, 2024. "Has Intergenerational Progress Stalled? Income Growth over Five Generations of Americans," IZA Discussion Papers 16807, Institute of Labor Economics (IZA).
    7. Marianne P. Bitler, 2023. "The Effects of the 2021 Child Tax Credit on Poverty," The ANNALS of the American Academy of Political and Social Science, , vol. 710(1), pages 75-89, November.
    8. Jeehoon Han & Bruce D. Meyer & James X. Sullivan, 2022. "Real-Time Poverty, Material Well-Being, and the Child Tax Credit," National Tax Journal, University of Chicago Press, vol. 75(4), pages 817-846.
    9. Adam Bee & Joshua Mitchell & Nikolas Mittag & Jonathan Rothbaum & Carl Sanders & Lawrence Schmidt & Matthew Unrath, 2023. "National Experimental Wellbeing Statistics - Version 1," Working Papers 23-04, Center for Economic Studies, U.S. Census Bureau.
    10. East, Chloe N. & Simon, David, 2024. "The safety net and job loss: How much insurance do public programs provide?," Journal of Public Economics, Elsevier, vol. 238(C).

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