Unequal Use of Social Insurance Benefits: The Role of Employers
Sarah Bana (),
Kelly Bedard (),
Rossin-Slater, Maya () and
Additional contact information
Kelly Bedard: University of California, Santa Barbara
Rossin-Slater, Maya: Stanford University
No 11882, IZA Discussion Papers from Institute of Labor Economics (IZA)
California's Disability Insurance (DI) and Paid Family Leave (PFL) programs have become important sources of social insurance, with benefit payments now exceeding those of the state's Unemployment Insurance program. However, there is considerable inequality in program take-up. While existing research shows that firm-specific factors explain a significant part of the growing earnings inequality in the U.S., little is known about the role of firms in determining the use of public leave-taking benefits. Using administrative data from California, we find strong evidence that DI and PFL program take-up is substantially higher in firms with high earnings premiums. A one standard deviation increase in the firm premium is associated with a 57 percent higher claim rate incidence. Our results suggest that changes in firm behavior have the potential to impact social insurance use and thus reduce an important dimension of inequality in America.
Keywords: disability insurance; paid family leave; social insurance; firm premium (search for similar items in EconPapers)
JEL-codes: J31 J32 J38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Unequal Use of Social Insurance Benefits: The Role of Employers (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11882
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().