Alternative Measures of State Ui Systems

W.E. Upjohn Institute Working Paper No. 00-62

38 Pages Posted: 21 Nov 2001

See all articles by Christopher J. O'Leary

Christopher J. O'Leary

W.E. Upjohn Institute for Employment Research

Robert Tannenwald

Federal Reserve Bank of Boston

Wei-Jang Huang

W.E. Upjohn Institute for Employment Research

Pei Zhu

MDRC

Date Written: January 2000

Abstract

Comparisons among state unemployment insurance (UI) systems can be misleading. Frequently quoted indicators of benefit generosity, tax cost, and adherence to the experience-rating principle are influenced by the relative economic conditions of states. Such comparisons thereby obscure underlying structural differences in state UI systems. A business considering alternative states in which to locate a production facility should be cautious when interpreting UI information in an economic developer's marketing pitch. This paper offers alternative indicators based on how representative firms, with a well specified unemployment experience, would fare in different states.

The authors use a micro-simulation approach to model the experiences of representative workers and firms to compare 28 states and contrast the results with those obtained from more conventional indicators. In closing, the authors consider whether a business location decision would be influenced differently by the alternative measures of state UI systems.

Keywords: unemployment insurance, state, comparison, firm location

JEL Classification: J6, H5

Suggested Citation

O'Leary, Christopher J. and Tannenwald, Robert and Huang, Wei-Jang and Zhu, Pei, Alternative Measures of State Ui Systems (January 2000). W.E. Upjohn Institute Working Paper No. 00-62, Available at SSRN: https://ssrn.com/abstract=291406 or http://dx.doi.org/10.2139/ssrn.291406

Christopher J. O'Leary (Contact Author)

W.E. Upjohn Institute for Employment Research ( email )

300 South Westnedge Avenue
Kalamazoo, MI 49007-4686
United States
269-343-5541 (Phone)
269-343-3308 (Fax)

Robert Tannenwald

Federal Reserve Bank of Boston ( email )

600 Atlantic Ave.
P.O. Box 2076
Boston, MA 02106
United States
617-973-3093 (Phone)
617-973-3957 (Fax)

Wei-Jang Huang

W.E. Upjohn Institute for Employment Research

300 South Westnedge Avenue
Kalamazoo, MI 49007-4686
United States

Pei Zhu

MDRC ( email )

200 Vesey Street
New York, NY 10281
United States

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