Recent Trends in Insured and Uninsured Unemployment: Is There an Explanation?
This paper explores the recent decline in the fraction of unemployed workers who receive unemployment insurance benefits. Using March Current Population Surveys, the authors compare the fraction who are potentially eligible for benefits with the fraction who receive them. The decline in insured unemployment is almost entirely due to a decline in the early 1980s in the takeup rate for benefits. The authors analyze the determinants of the takeup rate using both aggregated state-level data and micro data. At least half the decline is due to an increasing share of unemployment in states with lower takeup rates. Copyright 1991, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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|Date of creation:||Nov 1988|
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- Gary Burtless, 1983. "Why Is Insured Unemployment So Low?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 14(1), pages 225-254.
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