Recalls and unemployment insurance taxes

Stepan Jurajda

Applied Economics Letters, 2004, vol. 11, issue 10, 651-656

Abstract: The US unemployment insurance (UI) system draws its funds from a payroll tax on employers. The tax rate varies directly with an employer's layoff history. There exists extensive evidence on the effect of this so-called experience rated tax on layoff decisions. However, since firms are typically liable for each dollar of regular UI benefits paid to laid off former employees, experience rating may also affect recall behaviour. This note therefore measures the effect of the UI financing system on the duration of unemployment. This article finds some evidence that higher layoff tax costs shorten the duration of recall unemployment.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:11:y:2004:i:10:p:651-656

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/1350485042000238861

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().