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The Employment Service-Unemployment Insurance Partnership: Origin, Evolution, and Revitalization

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Abstract

This study traces the origin and evolution of the partnership between the employment service and unemployment insurance programs in the United States. We examine objectives of the framers of the Wagner-Peyser and Social Security Acts that established these programs. Using primary sources, we then analyze early actions of the architects of social insurance to facilitate cooperation between the two programs to meet economic exigencies, grapple with political cronyism, and surmount legal barriers. We also discuss factors that caused changes in the employment service–unemployment insurance partnership over time. We identify reasons for the erosion in cooperation starting in the 1980s, and explain why ever since there has been a continuous decline in service availability. Reviewing evidence on the effectiveness of in-person employment services for unemployment insurance beneficiaries, we suggest ways to revitalize the employment service–unemployment insurance partnership. We explore the source of Wagner-Peyser Act funding, how it was formalized, then eroded, and how it can be renewed.

Suggested Citation

  • David E. Balducchi & Christopher J. O'Leary, 2017. "The Employment Service-Unemployment Insurance Partnership: Origin, Evolution, and Revitalization," Upjohn Working Papers 17-269, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:17-269
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    Cited by:

    1. Christopher J. O'Leary & Stephen A. Wandner, 2020. "An Illustrated Case for Unemployment Insurance Reform," Upjohn Working Papers 19-317, W.E. Upjohn Institute for Employment Research.

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    More about this item

    Keywords

    employment service; unemployment insurance; Wagner-PeyserAct; Social Security Act; social insurance; public policy; Federal Unemployment Tax Act(FUTA); taxable wage base; intergovernmental relations;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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