Understanding Disparities in Unemployment Insurance Recipiency (with Hesong Yang)

Report prepared for the Department of Labor Chief Evaluation Office Summer Data Challenge on Equity and Underserved Communities

Blog from DOL: https://blog.dol.gov/2022/02/10/were-using-data-to-better-understand-our-work-and-create-more-equitable-programs-and-policies



Abstract: Using data from before and during the Covid-19 pandemic, we show that the expansion of benefi ts under the CARES Act only modestly increased self-reported UI recipiency among UI eligible workers, from 27% in 2018 to 36% in 2020/2021. We find that the same demographic groups that historically are less likely to report receiving benefi ts (less educated, younger, and racial and ethnic minorities) continued to be less likely to receive benefi ts during the pandemic. In addition we fi nd non-heterosexual workers are also substantially less likely to report receiving benefi ts. The overarching reason for these disparities is di fferences in beliefs about eligibility, resulting in likely-eligible workers not applying for benefi ts. We show that union members and individuals who live in states with historically higher recipiency rates are less likely to be misinformed about eligibility, suggesting a role for policy and informational interventions to improve recipiency rates.