Racial inequality in unemployment insurance receipt

Elira Kuka and Bryan A. Stuart

Journal of Public Economics, 2025, vol. 247, issue C

Abstract: This paper studies differences in unemployment insurance (UI) benefit receipt among White and Black individuals. We combine data containing detailed information on individuals’ work history and UI receipt with state-level UI regulations. Black individuals who separate from a job are 30 % less likely to receive UI and receive 46 % fewer benefits than White individuals. These gaps are similar in magnitude among individuals who are likely eligible for UI. Statistical decompositions indicate that 37 % of the gap in UI receipt and 65 % of the gap in UI benefit amount are explained by Black workers’ lower pre-unemployment earnings and higher tendency to live in the South.

Keywords: Racial inequality; Unemployment insurance; Social insurance (search for similar items in EconPapers)
JEL-codes: H5 I38 J15 J65 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:247:y:2025:i:c:s0047272725000994

DOI: 10.1016/j.jpubeco.2025.105401

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