Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300991 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17095
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the interaction between unemployment insurance (UI) and other social transfers exploiting state-level changes to UI generosity and data from the Survey of Income and Program Participation (1990-2013). We find that more generous UI leads to a reduction in the receipt of other public transfers. This results from a short-term decrease in the probability of receiving means-tested programs, like the Supplemental Nutrition Assistance Program, and a long-term reduction in the probability of receiving Social Security benefits. Accounting for these interactions, the optimal UI replacement rate may be 17 percentage points higher than the current rate in the US.
Subjects: 
unemployment insurance
social security
welfare analysis
JEL: 
J01
J08
J65
Document Type: 
Working Paper

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