IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v38y2024i3p164-182.html
   My bibliography  Save this article

Why Are Unemployment Insurance Claims So Low?

Author

Listed:
  • Christopher J. O’Leary
  • Kenneth J. Kline
  • Thomas A. Stengle
  • Stephen A. Wandner

Abstract

The authors investigate reasons unemployment insurance (UI) claims have declined dramatically over the past 3 decades. The fall is concerning because it suggests a reduced countercyclical effectiveness of the UI program. Additionally, weekly initial UI claims are an important leading indicator of aggregate economic activity, so their meaning has changed. The authors identify the main factors that changed with the decline in claims. Their procedure suggests what the level of claims would have been later in the period, had values of variables or parameters of the system been at levels observed earlier in the period. The analysis of state-year data suggests that the decline in UI claims stems largely from changes in the industrial and occupational mix of employment interacting with changes in UI program features set by individual states. This decline could be offset by federal rules for states to improve benefit access, replacement rates, and potential UI durations.

Suggested Citation

  • Christopher J. O’Leary & Kenneth J. Kline & Thomas A. Stengle & Stephen A. Wandner, 2024. "Why Are Unemployment Insurance Claims So Low?," Economic Development Quarterly, , vol. 38(3), pages 164-182, August.
    • Handle: RePEc:sae:ecdequ:v:38:y:2024:i:3:p:164-182
    DOI: 10.1177/08912424241256643
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/08912424241256643
    Download Restriction: no
    File URL: https://libkey.io/10.1177/08912424241256643?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
    ---><---

    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:sae:ecdequ:v:38:y:2024:i:3:p:164-182. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: SAGE Publications (email available below). General contact details of provider: .

    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.