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An Illustrated Case for Unemployment Insurance Reform

Author

Listed:
  • Christopher J. O'Leary

    (W.E. Upjohn Institute for Employment Research)

  • Stephen A. Wandner

    (W.E. Upjohn Institute and Urban Institute)

Abstract

We present a graphic case for unemployment insurance (UI) program reform. Through a series of illustrations summarizing historical trends, we show how the UI system has diverged from its intended purposes. Our figures show the decline of the program in addressing its essential aims of paying adequate unemployment compensation during involuntary unemployment and providing reemployment services. We illustrate the big differences in UI programs that have emerged because of the broad discretion afforded states to determine benefit generosity. We also illustrate declines in the financial means for providing benefits and reemployment services and a widening divergence among states in the quality of UI programs. Our concluding section presents a list of reforms that would restore UI as a pillar of social insurance and the labor market.

Suggested Citation

  • Christopher J. O'Leary & Stephen A. Wandner, 2020. "An Illustrated Case for Unemployment Insurance Reform," Upjohn Working Papers 19-317, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:19-317
    as

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    References listed on IDEAS

    as
    1. Erica L. Groshen & Simon M. Potter, 2003. "Has structural change contributed to a jobless recovery?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 9(Aug).
    2. David E. Balducchi & Christopher J. O'Leary, 2018. "The Employment Service-Unemployment Insurance Partnership: Origin, Evolutioin, and Revitalization," Book chapters authored by Upjohn Institute researchers, in: Stephen A. Wandner (ed.),Unemployment Insurance Reform: Fixing a Broken System, W.E. Upjohn Institute for Employment Research.
    3. Wayne Vroman & Stephen A. Woodbury, 2014. "Financing Unemployment Insurance," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(1), pages 253-268, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Francesco Spadafora, 2022. "Don’t let me down: unemployment insurance in the United States," Questioni di Economia e Finanza (Occasional Papers) 673, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    unemployment insurance; benefit eligibility; benefit adequacy; wage replacement ratio; recipiency rate; forward funding; taxable wage base; experience rating; reemployment services; program administration;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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