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The Finance of Unemployment Compensation and Its Consequences

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  • Audrey Guo
  • Andrew C. Johnston

Abstract

Economists have contributed important theoretical and empirical findings to the study of unemployment insurance (UI) benefits, but a deliberate study of the effect of UI taxation’s unique structure remains undone. We summarize available evidence on UI taxation, describe the history and institutions of experience rating, and outline important lines of inquiry for future work. As unemployment has risen, so has the need for a body of policy-relevant knowledge about the function and financing of UI systems.

Suggested Citation

  • Audrey Guo & Andrew C. Johnston, 2021. "The Finance of Unemployment Compensation and Its Consequences," Public Finance Review, , vol. 49(3), pages 392-434, May.
    • Handle: RePEc:sae:pubfin:v:49:y:2021:i:3:p:392-434
    DOI: 10.1177/10911421211021389
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    References listed on IDEAS

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    Cited by:

    1. Mark Duggan & Audrey Guo & Andrew C. Johnston, 2022. "Would Broadening the UI Tax Base Help Low-Income Workers?," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 107-111, May.
    2. Korpela, Heikki, 2025. "Experience rating the unemployment insurance tax: simulation results for Finland," Working Papers 173, VATT Institute for Economic Research.
    3. Mark Duggan & Audrey Guo & Andrew C. Johnston, 2023. "Experience Rating as an Automatic Stabilizer," Tax Policy and the Economy, University of Chicago Press, vol. 37(1), pages 109-133.
    4. Guo, Audrey, 2024. "Payroll tax incidence: Evidence from unemployment insurance," Journal of Public Economics, Elsevier, vol. 239(C).

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