Social and Behavioral Sciences Commons^™

Should Ui Eligibility Be Expanded To Low-Earning Workers? Evidence On Employment, Transfer Receipt, And Income From Administrative Data, Pauline Leung, Christopher J. O'Leary

Upjohn Institute Working Papers

Recent efforts to expand unemployment insurance (UI) eligibility are expected to increase low-earning workers’ access to UI. Although the expansion’s aim is to smooth the income and consumption of previously ineligible workers, it is possible that UI benefits simply displace other sources of income. Standard economic models predict that UI delays reemployment, thereby reducing wage income. Additionally, low-earning workers are often eligible for benefits from means-tested programs, which may decrease with UI benefits. In this paper, we estimate the impact of UI eligibility on employment, means-tested program participation, and income after job loss using a unique individual-level administrative data set …