Working Paper: NBER ID: w29595
Authors: Elira Kuka; Bryan A. Stuart
Abstract: This paper studies differences in receipt and take-up of unemployment insurance (UI) benefits among white and Black individuals. We combine state-level UI regulations with data containing detailed information on individuals’ work history and UI receipt. Black individuals who separate from a job are 24% less likely to receive UI than whites. The UI receipt gap stems primarily from lower take-up of UI benefits among likely eligible individuals, as opposed to differences in benefit eligibility. Statistical decompositions indicate that about one-half of the take-up gap is explained by Black workers’ lower pre-unemployment earnings and higher tendency to live in the South.
Keywords: No keywords provided
JEL Codes: H5; I38; J15; J65
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Black individuals separating from a job (J63) | UI receipt (Y20) |
| Lower takeup of UI benefits among likely eligible black individuals (J65) | UI receipt gap (Y91) |
| Likely eligible black individuals (J15) | UI benefits takeup (J65) |
| Differences in takeup among likely eligible individuals (H73) | Gap in UI receipt (J65) |
| Black individuals (J15) | Total UI benefits received (J65) |
| Racial gaps in UI receipt and takeup (J65) | Stability of racial gaps (I24) |