Publication Date

7-25-2022

Series

Upjohn Institute working paper ; 22-369

DOI

10.17848/wp22-369

Abstract

We use administrative data to quantify the firm role in unemployment insurance (UI) take-up. First, there are firm effects in both claiming and appeals, and, consistent with deterrence effects, these are negatively correlated. Second, low-wage workers are less likely to claim and more likely to have their claims appealed than median-wage workers, and firm effects explain a large share of these income gradients. Third, high-claiming and low-appealing firms are desirable firms: they are higher-paying and have lower separation rates. Finally, the dominant source of targeting error in the UI system is that eligible workers do not apply. Our findings emphasize a novel dimension of the role of firms in the labor market, and have implications for the financing of UI.

Issue Date

July 2022

Subject Areas

UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS; Unemployment insurance; Benefits and duration

Share

Get in touch with the expert

Want to arrange to discuss this work with the author(s)? Contact our .

COinS
 

Citation

Lachowska, Marta, Isaac Sorkin, and Stephen A. Woodbury. 2022. "Firms and Unemployment Insurance Take-Up." Upjohn Institute Working Paper 22-369. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp22-369