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UNEMPLOYMENT INSURANCE IN SURVEY AND ADMINISTRATIVE DATA

Jeff Larrimore, Jacob Mortenson and David Splinter

Journal of Policy Analysis and Management, 2023, vol. 42, issue 2, 571-579

Abstract: Unemployment Insurance (UI) benefits were a central part of the social safety net during the COVID‐19 recession. UI benefits, however, are severely understated in surveys. Using administrative tax data, we find that over half of UI benefits were missed in major survey data, with a greater understatement among low‐income workers. As a result, 2020 official poverty rates were overstated by about 2 percentage points, and corrected poverty reached a six‐decade low. We provide data to correct underreporting in surveys and show that, compared to UI benefits, the UI exclusion tax expenditure was less targeted at low incomes.

Date: 2023
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Citations: View citations in EconPapers (9)

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https://doi.org/10.1002/pam.22463

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Working Paper: Unemployment Insurance in Survey and Administrative Data (2022) Downloads
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