Effect of the state laws and economic factors on exhaustion rates for regular unemployment benefits: a statistical model
The report presents a statistical model of the effects of state laws and economic factors on exhaustion rate for regular unemployment insurance benefits. The model was estimated from quarterly pooled time-series, cross-sectional data for all states over the period 1965 to 1974. Exhaustion rate was found to be positively correlated with insured unemployment rate. A cyclical one percentage point increase in the IUR was calculated to result in a 4 to 5 percentage point increase in the exhaustion rate. The effect was offset somewhat by the tendency of average potential duration to rise during the cyclical downturns. Higher average potential unemployment durations tended to reduce exhaustion rates. Wage-replacement rates on unemployment tended to have a positive effect on exhaustion rate.
- Research Organization:
- Mathematica Policy Research, Princeton, NJ (USA); Employment and Training Administration, Washington, DC (USA). Unemployment Insurance Service
- OSTI ID:
- 5785826
- Report Number(s):
- PB-83-149468
- Country of Publication:
- United States
- Language:
- English
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