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Full-Text Articles in Social and Behavioral Sciences

Skills, Majors, And Jobs: Does Higher Education Respond?, Johnathan G. Conzelmann, Steven W. Hemelt, Brad J. Hershbein, Shawn Martin, Andrew Simon, Kevin M. Stange Apr 2024

Skills, Majors, And Jobs: Does Higher Education Respond?, Johnathan G. Conzelmann, Steven W. Hemelt, Brad J. Hershbein, Shawn Martin, Andrew Simon, Kevin M. Stange

Upjohn Institute Working Papers

How does postsecondary human capital investment respond to changes in labor market skill demand? We quantify the magnitude and nature of this response in the U.S. 4-year sector. To do so, we develop a new measure of institution-major-specific labor demand, and corresponding shift-share instrument, that combines job ads with alumni locations. We find that postsecondary human capital investments meaningfully respond. We estimate elasticities for degrees and credits centered around 1.3, generally increasing with time horizon. We provide evidence that both student demand and institutional supply-side constraints matter. Our findings illuminate the nature of educational production in higher education.


The Long-Run Impacts Of Public Industrial Investment On Local Development And Economic Mobility: Evidence From World War Ii, Andrew Garin, Jonathan Rothbaum Mar 2024

The Long-Run Impacts Of Public Industrial Investment On Local Development And Economic Mobility: Evidence From World War Ii, Andrew Garin, Jonathan Rothbaum

Upjohn Institute Working Papers

This paper studies the long-run effects of government-led construction of manufacturing plants on the regions where they were built and on individuals from those regions. Specifically, we examine publicly financed plants built in dispersed locations outside of major urban centers for security reasons during the United States’ industrial mobilization for World War II. Wartime plant construction had large and persistent impacts on local development, characterized by an expansion of relatively high-wage manufacturing employment throughout the postwar era. These benefits were shared by incumbent residents; we find men born before WWII in counties where plants were built earned $1,200 (in 2020 …


Work Organization And High-Paying Jobs, Dylan Nelson, Nathan Wilmers, Letian Zhang Mar 2024

Work Organization And High-Paying Jobs, Dylan Nelson, Nathan Wilmers, Letian Zhang

Upjohn Institute Working Papers

High-paying factory jobs in the 1940s were an engine of egalitarian economic growth for a generation. Are there alternate forms of work organization that deliver similar benefits for frontline workers? Work organization varies by type of complexity and degree of employer control. Technical and tacit knowledge tasks receive higher pay for signaling or developing human capital. Higher-autonomy tasks elicit efficiency wages. To test these ideas, we match administrative earnings to task descriptions from job postings. We then compare earnings for workers hired into the same occupation and firm, but under different task allocations. When jobs raise task complexity and autonomy, …


Employer Market Power In Silicon Valley, Matthew Gibson Mar 2024

Employer Market Power In Silicon Valley, Matthew Gibson

Upjohn Institute Working Papers

Adam Smith alleged that employers often secretly combine to reduce labor earnings. This paper examines an important case of such behavior: illegal no-poaching agreements through which information-technology companies agreed not to compete for each other’s workers. Exploiting the plausibly exogenous timing of a U.S. Department of Justice investigation, I estimate the effects of these agreements using a difference-in-difference design. Data from Glassdoor permit the inclusion of rich employer- and job-level controls. On average the no-poaching agreements reduced salaries at colluding firms by 5.6 percent, consistent with considerable employer market power. Stock bonuses and job satisfaction were also negatively affected.


Labor Market Effects Of Paid Sick Leave: The Case Of Seattle, Hilary Wething, Meredith Slopen Feb 2024

Labor Market Effects Of Paid Sick Leave: The Case Of Seattle, Hilary Wething, Meredith Slopen

Upjohn Institute Working Papers

We investigate the impact of Seattle’s Paid Sick and Safety Time (PSST) policy on workers’ quarterly hours worked and separation hazard. Using Unemployment Insurance records from before and after the implementation of PSST, we examine individual-level employment behavior at the extensive and intensive margins and compare Seattle workers to workers in Washington state using a difference-in-differences strategy. Importantly, we consider how impacts vary by employment characteristics, including worker wage rate and tenure, and by firm characteristics, including industry and firm size. We find that PSST increased workers’ quarterly hours by 4.42 hours per quarter, or around 18 hours per year. …


Effects Of Child Care Vouchers On Price, Quantity, And Provider Turnover In Private Care Markets, Won Fy Lee, Aaron Sojourner, Elizabeth E. Davis, Jonathan Borowsky Jan 2024

Effects Of Child Care Vouchers On Price, Quantity, And Provider Turnover In Private Care Markets, Won Fy Lee, Aaron Sojourner, Elizabeth E. Davis, Jonathan Borowsky

Upjohn Institute Working Papers

Harnessing changes in funding for a voucher program that subsidizes consumers’ use of child care services at private providers, this study quantifies effects on local markets’ service capacity and prices. We also estimate how increased funding effects provider entry rate, exit rate, and highly rated provider market share. The evidence shows that an additional $100 in private voucher funding per local young child would 1) raise the number of private-provider slots by 0.026per local young child, 2) raise average prices by $0.56 per week, mainly driven by a price increase among incumbent providers, and 3) induce new provider entry to …


Daca, Mobility Investments, And Economic Outcomes Of Immigrants And Natives, Jimena Villanueva Kiser, Riley Wilson Jan 2024

Daca, Mobility Investments, And Economic Outcomes Of Immigrants And Natives, Jimena Villanueva Kiser, Riley Wilson

Upjohn Institute Working Papers

Exploiting variation created by Deferred Action for Childhood Arrivals (DACA), we document the effects of immigrant legalization on immigrant mobility investments and economic outcomes. We provide new evidence that DACA increased both geographic and job mobility of young immigrants, often leading them to high-paying labor markets and licensed occupations. We then examine whether these gains to immigrants spill over and affect labor market outcomes of U.S.-born workers. Exploiting immigrant enclaves and source-country flows of DACA-eligible immigrants to isolate plausibly exogenous variation in the concentration of DACA recipients, we show that in labor markets where more of the working-age population can …


Grads On The Go: Measuring College-Specific Labor Markets For Graduates, Johnathan G. Conzelmann, Steven W. Hemelt, Brad J. Hershbein, Shawn Martin, Andrew Simon, Kevin M. Stange Dec 2023

Grads On The Go: Measuring College-Specific Labor Markets For Graduates, Johnathan G. Conzelmann, Steven W. Hemelt, Brad J. Hershbein, Shawn Martin, Andrew Simon, Kevin M. Stange

Upjohn Institute Working Papers

This paper introduces a new measure of the labor markets served by colleges and universities across the United States. About 50 percent of recent college graduates are living and working in the metro area nearest the institution they attended, with this figure climbing to 67 percent in-state. The geographic dispersion of alumni is more than twice as great for highly selective 4-year institutions as for 2-year institutions. However, more than one-quarter of 2-year institutions disperse alumni more diversely than the average public 4-year institution. In one application of these data, we find that the average strength of the labor market …


Gains From Reassignment: Evidence From A Two-Sided Teacher Market, Mariana Laverde, Elton Mykerezi, Aaron Sojourner, Aradhya Sood Nov 2023

Gains From Reassignment: Evidence From A Two-Sided Teacher Market, Mariana Laverde, Elton Mykerezi, Aaron Sojourner, Aradhya Sood

Upjohn Institute Working Papers

Although the literature on assignment mechanisms emphasizes the importance of efficiency based on agents’ preferences, policymakers may want to achieve different goals. For instance, school districts may want to affect student learning outcomes but must take teacher welfare into account when assigning teachers to students in classrooms and schools. This paper studies both the potential efficiency and equity test-score gains from within-district reassignment of teachers to classrooms using novel data that allows us to observe decisions of both teachers and principals in the teacher internal transfer process, and test-scores of students from the observed assignments. We jointly model student achievement …


Predictive Analytics Supporting Labor Market Success: A Career Explorer For Job Seekers And Workforce Professionals In Michigan, Christopher J. O'Leary, Salomon Orellana, Kevin Doyle, Randall W. Eberts, Ben Damerow, Amy Meyers, Kenneth J. Kline, Anna Wilcoxson, Beth C. Truesdale, Scott Powell Nov 2023

Predictive Analytics Supporting Labor Market Success: A Career Explorer For Job Seekers And Workforce Professionals In Michigan, Christopher J. O'Leary, Salomon Orellana, Kevin Doyle, Randall W. Eberts, Ben Damerow, Amy Meyers, Kenneth J. Kline, Anna Wilcoxson, Beth C. Truesdale, Scott Powell

Upjohn Institute Working Papers

Career Explorer provides customized career exploration tools for workforce development staff and job seekers in Michigan. There are separate Career Explorer modules for mediated staff services and self-service by job seekers. The system was developed by the Michigan Center for Data and Analytics in collaboration with the W.E. Upjohn Institute for Employment Research and Michigan Works! Southwest. It was funded by the U.S. Department of Labor’s Office of Workforce Investment and the Schmidt Futures foundation’s Data for the American Dream (D4AD) project. In this paper, we describe specifications of the models behind the frontline-staff-mediated version of Career Explorer, which are …


Minimum Wages And Racial Discrimination In Hiring: Evidence From A Field Experiment, Alec Brandon, Justin E. Holz, Andrew Simon, Haruka Uchida Nov 2023

Minimum Wages And Racial Discrimination In Hiring: Evidence From A Field Experiment, Alec Brandon, Justin E. Holz, Andrew Simon, Haruka Uchida

Upjohn Institute Working Papers

When minimum wages increase, employers may respond to the regulatory burdens by substituting away from disadvantaged workers. We test this hypothesis using a correspondence study with 35,000 applications around ex-ante uncertain minimum wage increases in three U.S. states. Before the increases, applicants with distinctively Black names were 19 percent less likely to receive a callback than equivalent applicants with distinctively white names. Announcements of minimum wage hikes substantially reduce callbacks for all applicants but shrink the racial callback gap by 80 percent. Racial inequality decreases because firms disproportionately reduce callbacks to lower-quality white applicants who benefited from discrimination under lower …


Jobseekers’ Beliefs About Comparative Advantage And (Mis)Directed Search, Andrea Kiss, Robert Garlick, Kate Orkin, Lukas Hensel Oct 2023

Jobseekers’ Beliefs About Comparative Advantage And (Mis)Directed Search, Andrea Kiss, Robert Garlick, Kate Orkin, Lukas Hensel

Upjohn Institute Working Papers

Worker sorting into tasks and occupations has long been recognized as an important feature of labor markets. But this sorting may be inefficient if jobseekers have inaccurate beliefs about their skills and therefore apply to jobs that do not match their skills. To test this idea, we measure young South African jobseekers’ communication and numeracy skills and their beliefs about their skill levels. Many jobseekers believe they are better at the skill in which they score lower, relative to other jobseekers. These beliefs predict the skill requirements of jobs where they apply. In two field experiments, giving jobseekers their skill …


Gender Gaps From Labor Market Shocks, Ria Ivandić, Anne Sophie Lassen Aug 2023

Gender Gaps From Labor Market Shocks, Ria Ivandić, Anne Sophie Lassen

Upjohn Institute Working Papers

Job loss leads to persistent adverse labor market outcomes, but assessments of gender differences in labor market recovery are lacking. We utilize plant closures in Denmark to estimate gender gaps in labor market outcomes and document that women face an increased risk of unemployment and lose a larger share of their earnings in the two years following job displacement. When accounting for observable differences in human Capital across men and women, half of the gender gap in unemployment remains. In a standard decomposition framework, we document that child care imposes an important barrier to women’s labor market recovery regardless of …


Taxing The Gender Gap: Labor Market Effects Of A Payroll Tax Cut For Women In Italy, Enrico Rubolino Jul 2023

Taxing The Gender Gap: Labor Market Effects Of A Payroll Tax Cut For Women In Italy, Enrico Rubolino

Upjohn Institute Working Papers

This paper studies the labor market effects of a large payroll tax cut for female hires in Italy. Starting in January 2013, the payroll tax rate paid by the employer for female hires was reduced by 50 percent for a period of 12 months for temporary jobs and 18 months for permanent jobs. Eligibility for the tax cut depends on the time elapsed in nonemployment status and varies discontinuously by the worker’s municipality of residence, age, and occupation. Combining social security data on the universe of Italian private-sector workers with several empirical approaches, I find that the tax cut increases …


Why Are Unemployment Insurance Claims So Low?, Christopher J. O'Leary, Kenneth J. Kline, Thomas A. Stengle, Stephen A. Wandner Apr 2023

Why Are Unemployment Insurance Claims So Low?, Christopher J. O'Leary, Kenneth J. Kline, Thomas A. Stengle, Stephen A. Wandner

Upjohn Institute Working Papers

In this paper, we examine the reasons why unemployment insurance (UI) claims have declined so dramatically over the past three decades. The fall in the UI claims rate is concerning because it suggests a reduced countercyclical effectiveness of the UI program. Additionally, weekly initial UI claims are regarded as an important leading indicator of aggregate economic activity, so their meaning has changed. We use a Oaxaca (1973) decomposition approach to identify the main factors for the decline in claims. The procedure suggests what the level of claims would have been later in the period, had values of variables or parameters …


College Majors And Skills: Evidence From The Universe Of Online Job Ads, Steven W. Hemelt, Brad J. Hershbein, Shawn Martin, Kevin M. Stange Apr 2023

College Majors And Skills: Evidence From The Universe Of Online Job Ads, Steven W. Hemelt, Brad J. Hershbein, Shawn Martin, Kevin M. Stange

Upjohn Institute Working Papers

We use the near universe of U.S. online job ads to document four new facts about the skills employers demand from college majors. First, some skills––social and organizational––are demanded from all majors whereas others––financial and customer service––are demanded from only particular majors. Second, some majors have skill demand profiles that mirror overall demand for college graduates, such as Business and General Engineering, while other majors, such as Nursing and Education, have relatively rare skill profiles. Third, cross-major differences in skill profiles explain considerable wage variation. Fourth, although major-specific skill demand varies across place, this variation plays little role in explaining …


The Decline Of Routine Tasks, Education Investments, And Intergenerational Mobility, Patrick Bennett, Kai Liu, Kjell Salvanes Mar 2023

The Decline Of Routine Tasks, Education Investments, And Intergenerational Mobility, Patrick Bennett, Kai Liu, Kjell Salvanes

Upjohn Institute Working Papers

How does a large structural change to the labor market affect education investments made at young ages? Exploiting differential exposure to the national decline in routine-task intensity across local labor markets, we show that the secular decline in routine tasks causes major shifts in education investments of high school students, where they invest less in vocational-trades education and increasingly invest in college education. Our results highlight that labor demand changes impact inequality in the next generation. Low-ability and low-SES students are most responsive to task-biased demand changes and, as a result, intergenerational mobility in college education increases.


Not Just For Kids: Child And Dependent Care Credit Benefits For Adult Care, Gabrielle Pepin, Yulya Truskinovsky Mar 2023

Not Just For Kids: Child And Dependent Care Credit Benefits For Adult Care, Gabrielle Pepin, Yulya Truskinovsky

Upjohn Institute Working Papers

The Child and Dependent Care Credit (CDCC) allows households to receive tax credits for certain expenses associated with the care of a spouse or adult dependent who is incapable of self care, but very few childless households claim the credit. We examine the value of the CDCC for qualifying households caring for adults. We find that, as of 2016, more than 10 percent of individuals aged 50 to 65 had a coresident spouse or parent likely to be a qualifying individual for the CDCC. We document how state and federal CDCC benefits decrease post-tax costs of typical caregiving services, such …


The Independent Contractor Workforce: New Evidence On Its Size And Composition And Ways To Improve Its Measurement In Household Surveys, Katharine G. Abraham, Brad J. Hershbein, Susan N. Houseman, Beth C. Truesdale Feb 2023

The Independent Contractor Workforce: New Evidence On Its Size And Composition And Ways To Improve Its Measurement In Household Surveys, Katharine G. Abraham, Brad J. Hershbein, Susan N. Houseman, Beth C. Truesdale

Upjohn Institute Working Papers

Good data on the size and composition of the independent contractor workforce are elusive, with household survey and administrative tax data often disagreeing on levels and trends. We carried out a series of focus groups to learn how self-employed independent contractors speak about their work. Based on these findings, we designed and fielded a large-scale telephone survey to elicit more accurate and complete information on independent contractors, including those who may be coded incorrectly as employees in conventional household survey data and those who are independent contractors in a secondary work activity. We find that, upon probing, roughly one in …


Estimating The Effects Of The Ada Amendments Act On The Hiring And Termination Of Individuals With Disabilities, Using New Disability Categorizations, Patrick Button, Philip Armour, Simon Hollands Jan 2023

Estimating The Effects Of The Ada Amendments Act On The Hiring And Termination Of Individuals With Disabilities, Using New Disability Categorizations, Patrick Button, Philip Armour, Simon Hollands

Upjohn Institute Working Papers

Disability discrimination laws are often used to potentially increase employment for individuals with disabilities. However, legal theory and empirical economics research do not provide conclusive answers as to how expansions in disability discrimination laws affect economic outcomes, namely hiring rates, for individuals with disabilities. We estimate the effect of the ADA Amendments Act (ADAAA) on employment transitions: hirings and terminations for individuals with disabilities relative to those without disabilities. To calculate employment transitions, we use data from the Survey of Income and Program Participation (SIPP). We also use the SIPP to develop additional measures and categorizations of disability based on …


Salary History And Employer Demand: Evidence From A Two-Sided Audit, Amanda Agan, Bo Cowgill, Laura K. Gee Dec 2022

Salary History And Employer Demand: Evidence From A Two-Sided Audit, Amanda Agan, Bo Cowgill, Laura K. Gee

Upjohn Institute Working Papers

We study how salary disclosures affect employer demand using a field experiment featuring hundreds of recruiters evaluating over 2,000 job applications. We randomize the presence of salary questions and the candidates’ disclosures for male and female applicants. Our findings suggest that extra dollars disclosed yield higher salary offers, willingness to pay, and perceptions of outside options by recruiters (all similarly for men and women). Recruiters make negative inferences about the quality and bargaining positions of non-disclosing candidates, though they penalize silent women less.


Are Retirement Planning Tools Substitutes Or Complements To Financial Capability?, Gopi Shah Goda, Matthew R. Levy, Colleen Flaherty Manchester, Aaron Sojourner, Joshua Tasoff, Jiusi Xiao Nov 2022

Are Retirement Planning Tools Substitutes Or Complements To Financial Capability?, Gopi Shah Goda, Matthew R. Levy, Colleen Flaherty Manchester, Aaron Sojourner, Joshua Tasoff, Jiusi Xiao

Upjohn Institute Working Papers

We conduct a randomized controlled trial to understand how a web-based retirement saving calculator affects workers’ retirement-savings decisions. In both conditions, the calculator projects workers’ retirement income goals. In the treatment condition, it also projects retirement income based on defined-contribution savings, prominently displays the gap between projected goal and actual retirement income, and allows users to interactively explore how alternative, future contribution choices would affect the gap. The treatment increased average annual retirement contributions by $174 (2.3 percent). However, effects were larger for those with greater financial knowledge, suggesting this type of tool complements, rather than substitutes for, underlying financial …


The Effects Of An Ellis Act Eviction On Neighborhood Socioeconomic Status, Brian J. Asquith Nov 2022

The Effects Of An Ellis Act Eviction On Neighborhood Socioeconomic Status, Brian J. Asquith

Upjohn Institute Working Papers

Rent-control advocates argue that its strongest feature is offering tenants strong protections from economic displacement. Nonetheless, rent control may have negative effects on tenants, as previous research has shown that these tenants have longer commutes and higher unemployment rates because they are incentivized to stay in place even after their location is no longer optimal. I study what happens to tenants when they are displaced from their rent-controlled apartments by exploiting a California law called the Ellis Act that allows landlords in Los Angeles and San Francisco to evict tenants even if they are lease-compliant, under the condition that all …


Long Social Distancing, Jose Maria Barrero, Nicholas Bloom, Steven J. Davis Nov 2022

Long Social Distancing, Jose Maria Barrero, Nicholas Bloom, Steven J. Davis

Upjohn Institute Working Papers

Many working-age Americans say they will continue some forms of social distancing after the COVID-19 pandemic ends. We uncover this long social distancing phenomenon in our monthly Survey of Working Arrangements and Attitudes. It is stronger among older persons, the less educated, and those who live with or care for persons at high risk from infectious diseases. Regression models fit to individual-level data suggest that social distancing lowered labor force participation by 2.4 percentage points in 2022, 1.2 points on an earnings-weighted basis. Daily interactions with at-risk persons and long COVID experiences lead to larger drags on participation. When combined …


Disability Insurance Screening And Worker Outcomes, Alexander Ahammer, Analisa Packham Oct 2022

Disability Insurance Screening And Worker Outcomes, Alexander Ahammer, Analisa Packham

Upjohn Institute Working Papers

We estimate the returns to more targeted disability insurance (DI) programs in terms of labor force participation and worker health. To do so, we analyze male workers after an acute workplace injury that experience differential levels of application screening. We find that when workers face tighter screening requirements, they are less likely to claim disability and are more likely to remain in the labor force. We observe no differences in any physical or mental health outcomes, including reinjury. Our findings imply that imposing stricter DI screening requirements has large fiscal benefits but does not yield any detectable health costs, on …


The Case For Dynamic Cities, Brian J. Asquith, Margaret C. Bock Sep 2022

The Case For Dynamic Cities, Brian J. Asquith, Margaret C. Bock

Upjohn Institute Working Papers

Cities today are confronting never-before-seen challenges to their top spot in the economic hierarchy. In this chapter, we lay out four challenges, past and future, that cities face today and identify policies that can help address the problems we identify. We call attention to the need for many U.S. cities to redevelop the large amount of aging postwar single-family housing, while reforming past exclusionary zoning and infrastructure decisions that exacerbated inequality. Cities will have to fix these past mistakes against the backdrop of an aging population and the rise of remote working, both of which undercut cities’ traditional source of …


Information, Intermediaries, And International Migration, Samuel Bazzi, Lisa Cameron, Simone Schaner, Firman Witoelar Aug 2022

Information, Intermediaries, And International Migration, Samuel Bazzi, Lisa Cameron, Simone Schaner, Firman Witoelar

Upjohn Institute Working Papers

Job seekers face substantial information frictions, especially in international labor markets where intermediaries match prospective migrants with overseas employers. We conducted a randomized trial in Indonesia to explore how information about intermediary quality shapes migration outcomes. Holding access to information about the return to choosing a high-quality intermediary constant, intermediary-specific quality disclosure reduces the migration rate, cutting use of low-quality providers. Workers who do migrate receive better pre-departure preparation and have improved experiences abroad, despite no change in occupation or destination. These results are not driven by changes in beliefs about average provider quality or the return to migration. Nor …


Centering Work: Integration And Diffusion Of Workforce Development Within The U.S. Manufacturing Extension Network, Nichola Lowe, Greg Schrock, Matthew D. Wilson, Rumana Rabbani, Allison Forbes Aug 2022

Centering Work: Integration And Diffusion Of Workforce Development Within The U.S. Manufacturing Extension Network, Nichola Lowe, Greg Schrock, Matthew D. Wilson, Rumana Rabbani, Allison Forbes

Upjohn Institute Working Papers

As the U.S. economy rebounds from the COVID-19 pandemic, strategies that promote long-term transformation toward high-quality jobs will be critical. This includes workplace-improving interventions that enable employers to upgrade existing jobs, often while enhancing their own competitive position. This paper focuses on the Manufacturing Extension Partnership, a national network of federally funded centers that support small and medium-sized manufacturing firms. We document the range of workforce- and workplace-enhancing strategies that MEP centers have adopted since the network’s inception in the mid-1990s. While workforce development is unevenly implemented across today’s MEP network, leading centers within the network are devising transformative strategies …


Keep Me In, Coach: The Short- And Long-Term Effects Of Targeted Academic Coaching, Serena Canaan, Stefanie Fischer, Pierre Mouganie, Geoffrey C. Schnorr Aug 2022

Keep Me In, Coach: The Short- And Long-Term Effects Of Targeted Academic Coaching, Serena Canaan, Stefanie Fischer, Pierre Mouganie, Geoffrey C. Schnorr

Upjohn Institute Working Papers

To boost college graduation rates, policymakers often advocate for academic supports such as coaching or mentoring. Proactive and intensive coaching interventions are effective, but are costly and difficult to scale. We evaluate a relatively lower-cost group coaching program targeted at first-year college students placed on academic probation. Participants attend a workshop where coaches aim to normalize failure and improve self-confidence. Coaches also facilitate a process whereby participants reflect on their academic difficulties, devise solutions to address their challenges, and create an action plan. Participants then hold a one-time follow-up meeting with their coach or visit a campus resource. Using a …


Firms And Unemployment Insurance Take-Up, Marta Lachowska, Isaac Sorkin, Stephen A. Woodbury Jul 2022

Firms And Unemployment Insurance Take-Up, Marta Lachowska, Isaac Sorkin, Stephen A. Woodbury

Upjohn Institute Working Papers

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 …