Should UI Eligibility Be Expanded to Low-Earning Workers? Evidence on Employment, Transfer Receipt, and Income from Administrative Data

摘要: Recent efforts to expand unemployment insurance (UI) eligibility are expected increase low-earning workers' access UI. Although the expansion's aim is smooth income and consumption of previously ineligible workers, it possible that UI benefits simply displace other sources income. Standard economic models predict delays reemployment, thereby reducing wage Additionally, workers often eligible for from means-tested programs, which may decrease with benefits. In this paper, we estimate impact on employment, program participation, after job loss using a unique individual-level administrative data set state Michigan. To identify causal effect, implement fuzzy regression discontinuity design around minimum earnings threshold eligibility. Our main finding while increases jobless durations by up 25 percent temporarily lowers receipt cash assistance (TANF) 63 percent, net total still positive large: quarter immediately following loss, UI-eligible have 46-61 higher incomes than ineligibles.