Working Paper: NBER ID: w24766
Authors: Elira Kuka
Abstract: While the Unemployment Insurance (UI) program is one of the largest safety net program in the U.S., research on its benefits is limited. This paper exploits plausibly exogenous changes in state UI laws to empirically estimate whether UI generosity mitigates any of the previously documented negative health effects of job loss. The results show higher UI generosity increases health insurance coverage and utilization, and leads to improved self-reported health. Moreover, these effects are stronger during periods of high unemployment rates. Finally, I find no effects on risky behaviors nor on health conditions.
Keywords: Unemployment Insurance; Health; Social Insurance
JEL Codes: H5; I1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Higher UI generosity (D64) | Increased health insurance coverage (I13) |
| Higher UI generosity (D64) | Increased utilization among the unemployed (J68) |
| Higher UI generosity (D64) | Improved self-reported health (I19) |
| 10 percentage point increase in UI generosity (J65) | 1.5 percentage point increase in likelihood of reporting good health (I14) |
| Higher UI generosity (D64) | Mitigating adverse health effects of job loss (J65) |
| Higher UI generosity (D64) | No significant effects on risky behaviors or health conditions (I12) |