1. How Insured Are Workers Against Unemployment? Unemployment Insurance and the Distribution of Liquid Wealth
- Author
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Luduvice, Andre Victor D. and Truss-Williams, Anaya
- Subjects
Workers -- Economic aspects -- Insurance ,Personal income -- Analysis ,Income distribution -- Analysis ,Unemployment -- Economic aspects -- United States ,Unemployment insurance -- Analysis ,Banking, finance and accounting industries ,Business, general ,Business ,Economics - Abstract
In this Economic Commentary, we analyze the relationship between unemployment insurance (UI) recipiency and insurance by examining the wealth distribution of workers who have been through an unemployment spell. We focus on the net liquid wealth gap between recipients and nonrecipients of UI along the income distribution of the unemployed. Using recent data from the Survey of Income and Program Participation at the individual level, we estimate that UI recipients at the bottom half of the income distribution tend to have higher median net liquid wealth than nonrecipients, putting nonrecipients in a potentially vulnerable economic position during periods of unemployment., Introduction During times of rising unemployment or labor market deterioration, unemployment insurance (UI) is a main component of the employment safety net available to US workers. The share of UI [...]
- Published
- 2024
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