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Discontinuous or Kinked Response? Dynamics of Unemployment Insurance and Public Assistance under the COVID-19 Crisis

Michihito Ando, Masato Furuichi and Hayato Kanayama

No vs8tr, SocArXiv from Center for Open Science

Abstract: This study investigates the responsiveness of Unemployment Insurance (UI) and Public Assistance (PA) programs during the COVID-19 employment shock in Japan. Estimating "excess" UI and PA caseloads under the COVID-19 crisis, we reveal heterogeneous responses to the COVID-19 shock: UI caseloads exhibit an instantaneous and discontinuous increase and subsequent decrease, while PA caseloads show a kinked and incremental increase. These contrasting safety net responses highlight a potential delay in safety net support for workers who are not eligible for UI benefits when a large employment shock occurs.

Date: 2023-10-29
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:vs8tr

DOI: 10.31219/osf.io/vs8tr

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