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A New WPRS Profiling Model for Michigan

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Abstract

The Worker Profiling and Reemployment Services (WPRS) system was established nationwide following the 1993 enactment of Public Law 103-152. The law requires state employment security agencies to profile new claimants for regular unemployment insurance (UI) benefits to identify those most likely to exhaust their regular benefits, and refer them to reemployment services to promote a faster transition to new employment. In November 1994, the Michigan Employment Security Commission (MESC) began profiling new UI claimants with technical assistance from the W. E. Upjohn Institute for Employment Research. Since WPRS profiling was introduced in Michigan much has changed, but the same model was in use until very recently. The MESC has been abolished, with UI now administered by the Michigan Bureau of Workers' and Unemployment Compensation (MBWUC). The process of taking UI claims has shifted from in-person interviews at local offices around the state to telephone claims taken by staff at three call centers to be located in Detroit, Grand Rapids, and Saginaw. Michigan has also changed from being a wage-request state for UI eligibility determination to a wage-reporting state. This means that each claimant's full benefit year UI entitlement is now known at the time that eligibility is established, a fact that permits new approaches to WPRS modeling. The MBWUC is also switching to using the new Standard Occupation Code (SOC) and North American Industrial Classification System (NAICS). Furthermore, UI has become a partner in new one-stop centers for employment services established in each workforce development area in the state as required by the Workforce Investment Act (WIA) of 1998. To develop a new Michigan WPRS profiling model which is in harmony with the new institutional realities, the MBWUC once again chose to partner with the W.E. Upjohn Institute for Employment Research. This brief paper offers a new WPRS model for Michigan which improves on the original model by applying lessons learned nationwide in the years since WPRS models were first implemented. A variety of alternative specifications were considered, the best of these was proposed as the new Michigan WPRS model. Michigan has since implemented this model and is now using it to profile UI claimants for referral to reemployment services promoting a speedy return to work.

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  • Randall W. Eberts & Christopher J. O'Leary, 2003. "A New WPRS Profiling Model for Michigan," Upjohn Working Papers and Journal Articles 04-102, W.E. Upjohn Institute for Employment Research.
  • Handle: RePEc:upj:weupjo:04-102
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    References listed on IDEAS

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    1. repec:mpr:mprres:3005 is not listed on IDEAS
    2. Randall W. Eberts & Christopher J. O'Leary, 1996. "Design of the Worker Profiling and Reemployment Services System and Evaluation in Michigan," Upjohn Working Papers and Journal Articles 96-41, W.E. Upjohn Institute for Employment Research.
    3. Christopher J. O'Leary & Paul T. Decker & Stephen A. Wandner, 2002. "Targeting Reemployment Bonuses," Book chapters authored by Upjohn Institute researchers,in: Stephen A. Wandner & Randall W. Eberts & Christopher J. O'Leary (ed.), Targeting Employment Services, chapter 6, pages 161-182 W.E. Upjohn Institute for Employment Research.
    4. Stephen A. Woodbury, 2009. "Unemployment," Book chapters authored by Upjohn Institute researchers,in: Kenneth G. Dau-Schmidt & Seth D. Harris & Orley Lobel (ed.), Labor and Employment Law and Economics, volume 2, pages 480-516 W.E. Upjohn Institute for Employment Research.
      • Stephen A. Woodbury, 2009. "Unemployment," Chapters,in: Labor and Employment Law and Economics, chapter 17 Edward Elgar Publishing.
    5. Robert B. Olsen & Marisa Kelso & Paul T. Decker & Daniel H. Klepinger, 2002. "Predicting the Exhaustion of Unemployment Compensation," Mathematica Policy Research Reports d0a9027f813a4bc397fce1190, Mathematica Policy Research.
    6. Karen Needels & Walter Corson & Michelle VanNoy, 2002. "Evaluation of the Significant Improvement Demonstration Grants for the Provision of Reemployment Services for UI Claimants," Mathematica Policy Research Reports 8a5c297fcc034329add0bbeee, Mathematica Policy Research.
    7. Štěpán Jurajda & Frederick J. Tannery, 2003. "Unemployment Durations and Extended Unemployment Benefits in Local Labor Markets," ILR Review, Cornell University, ILR School, vol. 56(2), pages 324-348, January.
    8. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2002. "Is the Threat of Reemployment Services More Effective than the Services Themselves? Experimental Evidence from the UI System," NBER Working Papers 8825, National Bureau of Economic Research, Inc.
    9. Stephen A. Woodbury & Murray Rubin, 1997. "The Duration of Benefits," Book chapters authored by Upjohn Institute researchers,in: Christopher J. O'Leary & Stephen A. Wandner (ed.), Unemployment Insurance in the United States: Analysis of Policy Issues, chapter 6, pages 211-283 W.E. Upjohn Institute for Employment Research.
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    Keywords

    profiling; worker; WPRS; Michigan; model; Upjohn; Eberts; O'Leary;

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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