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Unemployment Insurance

Author

Listed:
  • Stephen Woodbury

    (Michigan State University
    W.E. Upjohn Institute for Employment Research)

Abstract

Unemployment insurance (UI) provides temporary income support to workers who have lost their jobs and are seeking reemployment. This paper reviews the origins of the federal-state UI system in the United States and outlines its principles and goals. It also describes the conditions for benefit eligibility, the benefits themselves, and their financing through the UI payroll tax. The UI system is complex and includes many interested parties, including employers, worker advocates, state UI administrators, and the federal government. These parties' differing views have led to controversies over benefit eligibility, adequacy, and whether the states or federal government should bear primary responsibility for UI. The Great Recession caused most states’ UI trust funds to become insolvent and has led to renewed debate over the structure and financing of the system.

Suggested Citation

  • Stephen Woodbury, 2013. "Unemployment Insurance," Upjohn Working Papers 14-208, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:14-208
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    References listed on IDEAS

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    1. repec:mpr:mprres:1973 is not listed on IDEAS
    2. Raj Chetty, 2008. "Moral Hazard versus Liquidity and Optimal Unemployment Insurance," Journal of Political Economy, University of Chicago Press, vol. 116(2), pages 173-234, April.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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