EconPapers    
Economics at your fingertips  
 

The Implications of Labor Market Heterogeneity on Unemployment Insurance Design

Serdar Birinci and Kurt See

No 2024-026, Working Papers from Federal Reserve Bank of St. Louis

Abstract: We digitize state-level and time-varying unemployment insurance (UI) laws on eligibility, payment amount, and payment duration and combine them with microdata to estimate UI eligibility, take-up, and replacement rates at the individual level. We document how income and wealth levels affect unemployment risk, eligibility, take-up, and replacement rates over the course of unemployment. We evaluate whether these findings are important for shaping UI policy design using a general-equilibrium incomplete-markets model with a frictional labor market that matches our empirical findings. We show that a nested model that fails to match these findings yields a substantially less generous optimal UI policy.

Keywords: unemployment insurance; fiscal policy; household behavior; job search (search for similar items in EconPapers)
JEL-codes: E24 H31 J64 J65 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2024-09-19, Revised 2024-11-18
New Economics Papers: this item is included in nep-dge, nep-ipr and nep-lab
References: Add references at CitEc
Citations:

Downloads: (external link)
https://s3.amazonaws.com/real.stlouisfed.org/wp/2024/2024-026.pdf Full text (application/pdf)

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:fip:fedlwp:98801

Ordering information: This working paper can be ordered from
subscribe@stls.frb.org

DOI: 10.20955/wp.2024.026

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Anna Oates (anna.oates@stls.frb.org).

 
Page updated 2024-12-28
Handle: RePEc:fip:fedlwp:98801