What type of study is this?

September 10, 2025American Economic Review1 citations

Employers and Unemployment Insurance Take-Up

MLMarta Lachowska ISIsaac Sorkin SWStephen A. Woodbury

Key Points

Substantial employer effects influence unemployment insurance claiming and appeals, deterring claims.
Low-wage workers are less likely to claim unemployment benefits and more inclined to face appeals than median-wage workers.
Equalizing employer effects on claims could enhance the progressivity of unemployment insurance programs.
A primary targeting error in unemployment insurance is that eligible workers often do not claim their benefits.

Abstract

We quantify the employer's role in unemployment insurance (UI) take-up. Employer effects on claiming and appeals are substantial, and those effects are negatively correlated, consistent with appeals deterring claims. Low-wage workers are less likely to claim and more likely to have their claims appealed than median-wage workers. Employer effects help explain these income gradients, so equalizing employer effects on claiming would increase the progressivity of UI. Finally, the main source of targeting error in UI is that eligible workers do not claim. (JEL J22, J31, J63, J64, J65)

Ask AI

Helpful

Bookmark

View Full Paper