Unemployment Insurance Experience Rating and Labor Market Dynamics

by Federal Reserve Board

Unemployment insurance experience rating imposes higher payroll tax rates on firms that have laid off more workers in the past. To analyze the effects of UI tax policy on labor market dynamics, this paper develops a search model of unemployment with heterogeneous firms and realistic UI financing. The model predicts that higher experience rating reduces both job creation and job destruction. Using firm- level data from the Quarterly Census of Employment...

• Format: Paperback
• Language: English
• ISBN: 1503287130
• ISBN13: 9781503287136
• Release Date: November 2014
• Publisher: Createspace Independent Publishing Platform
• Length: 68 Pages
• Weight: 0.40 lbs.
• Dimensions: 0.1" x 8.5" x 11.0"