IDEAS home Printed from https://ideas.repec.org/a/bla/ecinqu/v57y2019i1p172-187.html
   My bibliography  Save this article

Examining The Externality Of Unemployment Insurance On Children'S Educational Achievement

Author

Listed:
  • Krishna Regmi

Abstract

I exploit differences in the generosity of unemployment insurance (UI) benefits across states and over time to investigate the link between UI and children's academic achievement. Estimates show that a 1% increase in maximum weekly UI benefits reduces the probability that a child repeats a grade by around 0.03 percentage points. The effect is concentrated among children of low‐ and middle‐income families. This paper's findings, which are the first in the literature to show evidence of a positive effect of UI on children's educational outcomes, provide insight into the role of UI in the human capital accumulation of children. (JEL I20, I38, J65)

Suggested Citation

  • Krishna Regmi, 2019. "Examining The Externality Of Unemployment Insurance On Children'S Educational Achievement," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 172-187, January.
    • Handle: RePEc:bla:ecinqu:v:57:y:2019:i:1:p:172-187
    DOI: 10.1111/ecin.12733
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ecin.12733
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ecin.12733?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Regmi Krishna, 2015. "Extended Unemployment Insurance and Job Search: Evidence from Time Use Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(2), pages 653-683, April.
    2. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, vol. 102(5), pages 1927-1956, August.
    3. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-782, July.
    4. Krueger, Alan B. & Mueller, Andreas, 2010. "Job search and unemployment insurance: New evidence from time use data," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 298-307, April.
    5. Pan, Weixiang & Ost, Ben, 2014. "The impact of parental layoff on higher education investment," Economics of Education Review, Elsevier, vol. 42(C), pages 53-63.
    6. Chetty, Raj, 2006. "A general formula for the optimal level of social insurance," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 1879-1901, November.
    7. Gordon B. Dahl & Katrine V. Løken & Magne Mogstad & Kari Vea Salvanes, 2016. "What Is the Case for Paid Maternity Leave?," The Review of Economics and Statistics, MIT Press, vol. 98(4), pages 655-670, October.
    8. Barr, Andrew & Turner, Sarah, 2015. "Out of work and into school: Labor market policies and college enrollment during the Great Recession," Journal of Public Economics, Elsevier, vol. 124(C), pages 63-73.
    9. Philip Oreopoulos & Marianne E. Page, 2006. "The Intergenerational Effects of Compulsory Schooling," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 729-760, October.
    10. Philip Oreopoulos & Marianne Page & Ann Huff Stevens, 2008. "The Intergenerational Effects of Worker Displacement," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 455-483, July.
    11. Hilary Hoynes & Diane Whitmore Schanzenbach & Douglas Almond, 2016. "Long-Run Impacts of Childhood Access to the Safety Net," American Economic Review, American Economic Association, vol. 106(4), pages 903-934, April.
    12. Moffitt, Robert, 1985. "Unemployment insurance and the distribution of unemployment spells," Journal of Econometrics, Elsevier, vol. 28(1), pages 85-101, April.
    13. Gruber, Jonathan, 1997. "The Consumption Smoothing Benefits of Unemployment Insurance," American Economic Review, American Economic Association, vol. 87(1), pages 192-205, March.
    14. Marco Manacorda, 2012. "The Cost of Grade Retention," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 596-606, May.
    15. Brian A. Jacob & Lars Lefgren, 2009. "The Effect of Grade Retention on High School Completion," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 33-58, July.
    16. Hunt, Jennifer, 1995. "The Effect of Unemployment Compensation on Unemployment Duration in Germany," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 88-120, January.
    17. Emilia Del Bono & Marco Francesconi & Yvonne Kelly & Amanda Sacker, 2016. "Early Maternal Time Investment and Early Child Outcomes," Economic Journal, Royal Economic Society, vol. 126(596), pages 96-135, October.
    18. Eide, Eric R. & Showalter, Mark H., 2001. "The effect of grade retention on educational and labor market outcomes," Economics of Education Review, Elsevier, vol. 20(6), pages 563-576, December.
    19. Lawrence F. Katz & Bruce D. Meyer, 1990. "Unemployment Insurance, Recall Expectations, and Unemployment Outcomes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(4), pages 973-1002.
    20. Joanne W. Hsu & David A. Matsa & Brian T. Melzer, 2018. "Unemployment Insurance as a Housing Market Stabilizer," American Economic Review, American Economic Association, vol. 108(1), pages 49-81, January.
    21. Nathaniel G. Hilger, 2016. "Parental Job Loss and Children's Long-Term Outcomes: Evidence from 7 Million Fathers' Layoffs," American Economic Journal: Applied Economics, American Economic Association, vol. 8(3), pages 247-283, July.
    22. Anna Aizer & Shari Eli & Joseph Ferrie & Adriana Lleras-Muney, 2016. "The Long-Run Impact of Cash Transfers to Poor Families," American Economic Review, American Economic Association, vol. 106(4), pages 935-971, April.
    23. Baily, Martin Neil, 1978. "Some aspects of optimal unemployment insurance," Journal of Public Economics, Elsevier, vol. 10(3), pages 379-402, December.
    24. Mari Rege & Kjetil Telle & Mark Votruba, 2011. "Parental Job Loss and Children's School Performance," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(4), pages 1462-1489.
    25. Kevin Milligan & Mark Stabile, 2011. "Do Child Tax Benefits Affect the Well-Being of Children? Evidence from Canadian Child Benefit Expansions," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 175-205, August.
    26. Tefft, Nathan, 2011. "Insights on unemployment, unemployment insurance, and mental health," Journal of Health Economics, Elsevier, vol. 30(2), pages 258-264, March.
    27. Nan Astone & Sara McLanahan, 1994. "Family structure, residential mobility, and school dropout: A research note," Demography, Springer;Population Association of America (PAA), vol. 31(4), pages 575-584, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Regmi, Krishna & J. Henderson, Daniel, 2019. "Labor demand shocks at birth and cognitive achievement during childhood," Economics of Education Review, Elsevier, vol. 73(C).
    2. Hansen, Kerstin F. & Stutzer, Alois, 2022. "Parental unemployment, social insurance and child well-being across countries," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 600-617.
    3. Hamid Noghanibehambari & Mahmoud Salari, 2020. "Health benefits of social insurance," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1813-1822, December.
    4. Acton, Riley & Khafaji-King, Jo Al & Smith, Austin C., 2023. "Suspended from Work and School? Impacts of Layoff Events and Unemployment Insurance on Student Disciplinary Incidence," IZA Discussion Papers 16423, Institute of Labor Economics (IZA).
    5. Regmi, Krishna, 2020. "The effect of the minimum wage on children’s cognitive achievement," Labour Economics, Elsevier, vol. 65(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elira Kuka, 2020. "Quantifying the Benefits of Social Insurance: Unemployment Insurance and Health," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 490-505, July.
    2. Paul Bingley & Lorenzo Cappellari & Marco Ovidi, 2023. "When it hurts the most: timing of parental job loss and a child’s education," LISER Working Paper Series 2023-12, Luxembourg Institute of Socio-Economic Research (LISER).
    3. George Bulman & Robert Fairlie & Sarena Goodman & Adam Isen, 2021. "Parental Resources and College Attendance: Evidence from Lottery Wins," American Economic Review, American Economic Association, vol. 111(4), pages 1201-1240, April.
    4. Britto, Diogo & Melo, Caique & Sampaio, Breno, 2022. "The Kids Aren't Alright: Parental Job Loss and Children's Outcomes Within and Beyond Schools," CEPR Discussion Papers 17562, C.E.P.R. Discussion Papers.
    5. Regmi, Krishna, 2020. "The effect of the minimum wage on children’s cognitive achievement," Labour Economics, Elsevier, vol. 65(C).
    6. Raj Chetty & Amy Finkelstein, 2012. "Social Insurance: Connecting Theory to Data," NBER Working Papers 18433, National Bureau of Economic Research, Inc.
    7. Camille Landais, 2015. "Assessing the Welfare Effects of Unemployment Benefits Using the Regression Kink Design," American Economic Journal: Economic Policy, American Economic Association, vol. 7(4), pages 243-278, November.
    8. Saez, Emmanuel & Landais, Camille & Michaillat, Pascal, 2010. "Optimal Unemployment Insurance over the Business Cycle," CEPR Discussion Papers 8132, C.E.P.R. Discussion Papers.
    9. Tom Krebs & Martin Scheffel, 2016. "Labor Market Institutions and the Cost of Recessions," CESifo Working Paper Series 6262, CESifo.
    10. Krueger, Alan B. & Meyer, Bruce D., 2002. "Labor supply effects of social insurance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 33, pages 2327-2392, Elsevier.
    11. Johannes F. Schmieder & Till von Wachter, 2016. "The Effects of Unemployment Insurance Benefits: New Evidence and Interpretation," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 547-581, October.
    12. Andrew E. Clark & Conchita D'Ambrosio & Marta Barazzetta, 2021. "Childhood circumstances and young adulthood outcomes: The role of mothers' financial problems," Health Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 342-357, February.
    13. Stevens, Ann Huff & Schaller, Jessamyn, 2011. "Short-run effects of parental job loss on children's academic achievement," Economics of Education Review, Elsevier, vol. 30(2), pages 289-299, April.
    14. Willage, Barton & Willén, Alexander, 2022. "Postpartum Job Loss: Transitory Effect on Mothers, Long-run Damage to Children," European Economic Review, Elsevier, vol. 150(C).
    15. Riukula, Krista, 2024. "Childhood Shocks and Fertility: Evidence from Parental Job Loss," ETLA Working Papers 112, The Research Institute of the Finnish Economy.
    16. Cynthia L. Doniger, 2022. "These Caps Spilleth Over: Equilibrium Effects of Unemployment Insurance," Finance and Economics Discussion Series 2022-074, Board of Governors of the Federal Reserve System (U.S.).
    17. Hema Shah & Lisa A. Gennetian, 2024. "Unconditional cash transfers for families with children in the U.S.: a scoping review," Review of Economics of the Household, Springer, vol. 22(2), pages 415-450, June.
    18. Edwards Kathryn Anne, 2020. "Who helps the unemployed? Workers’ receipt of public and private transfers," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 9(1), pages 1-26, March.
    19. Thomas C. Buchmueller & Helen Levy & Robert G. Valletta, 2021. "Medicaid Expansion and the Unemployed," Journal of Labor Economics, University of Chicago Press, vol. 39(S2), pages 575-617.
    20. Joanne W. Hsu & David A. Matsa & Brian T. Melzer, 2014. "Positive Externalities of Social Insurance: Unemployment Insurance and Consumer Credit," NBER Working Papers 20353, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecinqu:v:57:y:2019:i:1:p:172-187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.