Skip to main content

Main menu

  • Home
  • Content
    • Current
    • Ahead of print
    • Archive
    • Supplementary Material
  • Info for
    • Authors
    • Subscribers
    • Institutions
    • Advertisers
  • About Us
    • About Us
    • Editorial Board
  • Connect
    • Feedback
    • Help
    • Request JHR at your library
  • Alerts
  • Call for Editor
  • Free Issue
  • Special Issue
  • Other Publications
    • UWP

User menu

  • Register
  • Subscribe
  • My alerts
  • Log in
  • My Cart

Search

  • Advanced search
Journal of Human Resources
  • Other Publications
    • UWP
  • Register
  • Subscribe
  • My alerts
  • Log in
  • My Cart
Journal of Human Resources

Advanced Search

  • Home
  • Content
    • Current
    • Ahead of print
    • Archive
    • Supplementary Material
  • Info for
    • Authors
    • Subscribers
    • Institutions
    • Advertisers
  • About Us
    • About Us
    • Editorial Board
  • Connect
    • Feedback
    • Help
    • Request JHR at your library
  • Alerts
  • Call for Editor
  • Free Issue
  • Special Issue
  • Follow uwp on Twitter
  • Follow JHR on Bluesky
Research ArticleArticle

How Income Changes During Unemployment

Evidence from Tax Return Data

Laura Kawano and Sara LaLumia
Journal of Human Resources, March 2017, 52 (2) 418-456; DOI: https://doi.org/10.3368/jhr.52.2.0414-6319R2
Laura Kawano
Laura Kawano is a research affiliate in the Office of Tax Policy Research at the University of Michigan; this research was conducted while she was a financial economist in the Office of Tax Analysis at the U.S. Department of Treasury. Sara LaLumia is an associate professor in the Department of Economics at Williams College.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
Sara LaLumia
Laura Kawano is a research affiliate in the Office of Tax Policy Research at the University of Michigan; this research was conducted while she was a financial economist in the Office of Tax Analysis at the U.S. Department of Treasury. Sara LaLumia is an associate professor in the Department of Economics at Williams College.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • Article
  • Figures & Data
  • Supplemental
  • Info & Metrics
  • References
  • PDF
Loading

References

  1. ↵
    1. Addison John,
    2. Blackburn McKinley
    . 2000. “The Effects of Unemployment Insurance on Post-unemployment Earnings.” Labour Economics 7(1):21–53.
    OpenUrlCrossRefWeb of Science
  2. ↵
    1. Amromin Gene,
    2. Smith Paul
    . 2003. “What Explains Early Withdrawals from Retirement Accounts? Evidence from a Panel of Taxpayers.” National Tax Journal 56(3):595–612.
    OpenUrl
  3. ↵
    1. Anderson Patricia,
    2. Meyer Bruce
    . 1997. “Unemployment Insurance Take-Up Rates and the After-Tax Value of Benefits.” Quarterly Journal of Economics 112(3):913–37.
    OpenUrlCrossRef
  4. ↵
    1. Atkinson Anthony
    . 1987. “Income Maintenance and Social Insurance.” In Handbook of Public Economics, ed. Auerbach Alan, Feldstein Martin, 780–908. Amsterdam: Elsevier.
  5. ↵
    1. Autor David,
    2. Duggan Mark
    . 2003. “The Rise in the Disability Rolls and the Decline in Unemployment.” Quarterly Journal of Economics 118(1):157–206.
    OpenUrlCrossRefWeb of Science
  6. ↵
    1. Bentolila Samuel,
    2. Ichino Andrea
    . 2008. “Unemployment and Consumption Near and Far Away from the Mediterranean.” Journal of Population Economics 21(2):255–80.
    OpenUrlCrossRefWeb of Science
  7. ↵
    1. Bitler Marianne,
    2. Hoynes Hilary
    . 2016. “The More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession.” Journal of Labor Economics 34(1, part 2):S403–S444.
    OpenUrl
  8. ↵
    1. Blank Rebecca,
    2. Card David
    . 1991. “Recent Trends in Insured and Uninsured Unemployment: Is There an Explanation?” Quarterly Journal of Economics 106(4):1157–89.
    OpenUrlCrossRefWeb of Science
  9. ↵
    1. Bollinger Christopher,
    2. Hirsch Barry
    . 2006. “Match Bias from Earnings Imputation in the Current Population Survey: The Case of Imperfect Matching.” Journal of Labor Economics 24(3): 489–506.
    OpenUrl
  10. ↵
    1. Browning Martin,
    2. Crossley Thomas F.
    2001. “Unemployment Insurance Benefit Levels and Consumption Changes.” Journal of Public Economics 80(1):1–23.
    OpenUrlCrossRefWeb of Science
  11. ↵
    1. Burman Leonard,
    2. Randolph William
    . 1994. “Measuring Permanent Responses to Capital-Gains Tax Changes in Panel Data.” American Economic Review 84(4):794–809.
    OpenUrl
  12. ↵
    1. Card David,
    2. Johnston Andrew,
    3. Leung Pauline,
    4. Mas Alexandre,
    5. Pei Zhuan
    . 2015. “The Effect of Unemployment Benefits on the Duration of Unemployment Insurance Receipt: New Evidence from a Regression Kink Design in Missouri, 2003–2013.” American Economic Review 105(5):126–30.
    OpenUrl
  13. ↵
    1. Chan Sewin,
    2. Stevens Ann Huff
    . 2001. “Job Loss and Employment Patterns of Older Workers.” Journal of Labor Economics 19(2):484–521.
    OpenUrlCrossRefWeb of Science
  14. ↵
    1. Chetty Raj
    . 2008. “Moral Hazard Versus Liquidity and Optimal Unemployment Insurance.” Journal of Political Economy 116(2):173–234.
    OpenUrlCrossRefWeb of Science
  15. ↵
    1. Couch Kenneth,
    2. Placzek Dana
    . 2010. “Earnings Losses of Displaced Workers Revisited.” American Economic Review 100(1):572–589.
    OpenUrlCrossRef
  16. ↵
    1. Davis Steven,
    2. von Wachter Till
    . 2011. “Recessions and the Costs of Job Loss.” Brookings Papers on Economic Activity 43(2):1–72.
    OpenUrl
  17. ↵
    1. Dynarski Susan,
    2. Gruber Jonathan
    . 1997. “Can Families Smooth Variable Earnings?” Brookings Papers on Economic Activity 1:229–303.
    OpenUrl
  18. ↵
    1. Ebenstein Avraham,
    2. Stange Kevin
    . 2010. “Does Inconvenience Explain Low Take-Up? Evidence from Unemployment Insurance.” Journal of Policy Analysis and Management 29(1):111–36.
    OpenUrlCrossRef
  19. ↵
    1. Engen Eric,
    2. Gruber Jonathan
    . 2001. “Unemployment Insurance and Precautionary Saving.” Journal of Monetary Economics 47(3):545–79.
    OpenUrlCrossRefWeb of Science
  20. ↵
    1. Evans David,
    2. Leighton Linda
    . 1989. “Some Empirical Aspects of Entrepreneurship.” American Economic Review 79(3):519–35.
    OpenUrlWeb of Science
  21. ↵
    1. Fairlie Robert
    . 2013. “Entrepreneurship, Economic Conditions, and the Great Recession.” Journal of Economics and Management Strategy 22(2):207–31.
    OpenUrlCrossRefWeb of Science
  22. ↵
    1. Farber Henry
    . 1997. “The Changing Face of Job Loss in the United States, 1981–1995.” Brookings Papers on Economic Activity, Microeconomics 1997:5–128.
    OpenUrl
  23. ↵
    1. Federal Reserve Bulletin
    . 2014. “Changes in U.S. Family Finances from 2010 to 2013: Evidence from the Survey of Consumer Finances.” Technical Report 2014.
  24. ↵
    1. Ganong Peter,
    2. Liebman Jeffrey B.
    2013. “The Decline, Rebound, and Further Rise in SNAP Enrollment: Disentangling Business Cycle Fluctuations and Policy Changes.” NBER Working Paper 19363.
  25. ↵
    1. Gould-Werth Alix,
    2. Shaefer H. Luke
    . 2012. “Unemployment Insurance Participation by Education and by Race and Ethnicity.” Monthly Labor Review 135(10):28–41.
    OpenUrl
  26. ↵
    1. Government Accounting Office
    . 2006. “Unemployment Insurance: Factors Associated With Benefit Receipt.” GAO-06-341.
  27. ↵
    1. Government Accounting Office
    . 2012.“Economic Circumstances of Individuals Who Exhausted Benefits.” GAO-12-408.
  28. ↵
    1. Gruber Jonathan
    . 2001. “The Wealth of the Unemployed.” Industrial and Labor Relations Review 55(1):79–94.
    OpenUrlCrossRef
  29. ↵
    1. Hilger Nathaniel
    . 2016. “Parental Job Loss and Children’s Long-Term Outcomes: Evidence from 7 Million Fathers’ Layoffs.” American Economic Journal: Applied Economics 8(3):247–283.
    OpenUrl
  30. ↵
    1. Hurst Erik,
    2. Stafford Frank
    . 2004. “Home is Where the Equity Is: Mortgage Refinancing and Household Consumption.” Journal of Money, Credit, and Banking 36(6):985–1014.
    OpenUrlCrossRefWeb of Science
  31. ↵
    1. Jacobson Louis,
    2. LaLonde Robert,
    3. Sullivan Daniel
    . 1993. “Earnings Losses of Displaced Workers.” American Economic Review 83(4):685–709.
    OpenUrlWeb of Science
  32. ↵
    1. Kawano Laura,
    2. LaLumia Sara
    . 2015. “Variation in the Added Worker Effect.” Working Paper.
  33. ↵
    1. Kletzer Lori
    . 1998. “Job Displacement.” Journal of Economic Perspectives 12(1):115–36.
    OpenUrl
  34. ↵
    1. Kodrzycki Yolanda
    . 2007. “Using Unexpected Recalls to Examine the Long-Term Earnings Effects of Job Displacement.” Federal Reserve Bank of Boston Working Paper.
  35. ↵
    1. Kroft Kory,
    2. Notowidigdo Matthew
    . 2016. “Should Unemployment Insurance Vary with the Unemployment Rate? Theory and Evidence.” Review of Economic Studies 83(3):1092–1124.
    OpenUrlCrossRef
  36. ↵
    1. Krueger Alan,
    2. Meyer Bruce
    . 2002. “Labor Supply Effects of Social Insurance.” In Handbook of Public Economics, ed. Auerbach Alan, Feldstein Martin, 2327–2392. Amsterdam: Elsevier.
  37. ↵
    1. Lillard Lee,
    2. Smith James,
    3. Welch Finis
    . 1986. “What Do We Really Know about Wages? The Importance of Nonreporting and Census Imputation.” Journal of Political Economy 94(3, part 1):489–506.
    OpenUrlCrossRefWeb of Science
  38. ↵
    1. Lindner Stephan,
    2. Nichols Austin
    . 2012. “The Impact of Temporary Assistance Programs on Disability Rolls and Re-Employment.” Working Paper.
  39. ↵
    1. Love David
    . 2006. “Buffer Stock Saving in Retirement Accounts.” Journal of Monetary Economics 53(7):1473–92.
    OpenUrlCrossRefWeb of Science
  40. ↵
    1. Mathiowetz Nancy,
    2. Duncan Greg
    . 1988. “Out of Work, Out of Mind: Response Errors in Retrospective Reports of Unemployment.” Journal of Business and Economic Statistics 6(2):221–29.
    OpenUrlCrossRefWeb of Science
  41. ↵
    1. Meyer Bruce
    . 1990. “Unemployment Insurance and Unemployment Spells.” Econometrica 58(4):757–82.
    OpenUrlCrossRefWeb of Science
  42. ↵
    1. Meyer Bruce,
    2. Mok Wallace,
    3. Sullivan James
    . 2009. “The Under-Reporting of Transfers in Household Surveys: Its Nature and Consequences.” NBER Working Paper 15181.
    1. Mueller Andreas,
    2. Rothstein Jesse,
    3. von Wachter Till
    . 2016. “Unemployment Insurance and Disability Insurance in the Great Recession.” Journal of Labor Economics 34(1, part 2): 445–475.
    OpenUrl
  43. ↵
    1. Munnell Alicia,
    2. Webb Anthony
    . 2015. “The Impact of Leakages from 401(k)s and IRAs.” Center for Retirement Research Working Paper 2015-12.
  44. ↵
    1. Oyer Paul
    . 2004. “Recall Bias Among Displaced Workers.” Economics Letters 82(3):397–402.
    OpenUrl
  45. ↵
    1. Parker Simon
    . 2004. The Economics of Self-Employment and Entrepreneurship. Cambridge, England: Cambridge University Press.
  46. ↵
    1. Rothstein Jesse
    . 2011. “Unemployment Insurance and Job Search in the Great Recession.” Brookings Papers on Economic Activity Fall:143–96.
  47. ↵
    1. Rutledge Matthew
    . 2012. “The Impact of Unemployment Insurance Extensions on Disability Insurance Application and Allowance Rates.” Center for Retirement Research Working Paper No. 2011-17.
  48. ↵
    1. Schoeni Robert
    . 2002. “Does Unemployment Insurance Displace Familial Assistance?” Public Choice 110(1–2):99–119.
    OpenUrlCrossRefWeb of Science
  49. ↵
    1. Schoeni Robert,
    2. Dardia Michael
    . 1996. “Wage Losses of Displaced Workers in the 1990s.” RAND Working Paper.
  50. ↵
    1. Shaefer H. Luke
    . 2010. “Identifying Key Barriers to Unemployment Insurance for Disadvantaged Workers in the United States.” Journal of Social Policy 39(3):439–60.
    OpenUrlCrossRef
  51. ↵
    1. Slemrod Joel
    . 2007. “Cheating Ourselves: The Economics of Tax Evasion.” Journal of Economic Perspectives 21(1):25–48.
    OpenUrlCrossRefPubMedWeb of Science
  52. ↵
    1. Social Security Administration
    . 2013. “Annual Statistical Report on the Social Security Disability Insurance Program, 2012.” Technical Report 2013.
  53. ↵
    1. Stephens Melvin Jr.
    2001. “The Long–Run Consumption Effects of Earnings Shocks.” Review of Economics and Statistics 83(1):28–36.
    OpenUrlCrossRefWeb of Science
  54. ↵
    1. Stevens Ann Huff
    . 1997. “Persistent Effects of Job Displacement: The Importance of Multiple Job Losses.” Journal of Labor Economics 15(1, part 1):165–88.
    OpenUrlCrossRefWeb of Science
  55. ↵
    1. Sullivan James
    . 2008. “Borrowing During Unemployment: Unsecured Debt as a Safety Net.” Journal of Human Resources 43(2):383–412.
    OpenUrlAbstract/FREE Full Text
  56. ↵
    1. U.S. Census Bureau
    . 2012. “Statistical Abstract of the United States: 2012.” Technical Report 2012.
  57. ↵
    1. Von Wachter Till,
    2. Song Jae,
    3. Manchester Joyce
    . 2009. “Long-Term Earnings Losses Due to Mass Layoffs During the 1982 Recession: An Analysis Using U.S. Administrative Data from 1974 to 2004.” Working Paper.
  58. ↵
    1. Von Wachter Till,
    2. Handwerker Elizabeth Weber,
    3. Hildreth Andrew
    . 2008. “Estimating the ‘True’ Cost of Job Loss: Evidence Using Matched Data from California 1991–2000.” Working Paper.
PreviousNext
Back to top

In this issue

Journal of Human Resources: 52 (2)
Journal of Human Resources
Vol. 52, Issue 2
31 Mar 2017
  • Table of Contents
  • Table of Contents (PDF)
  • Index by author
  • Front Matter (PDF)
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on Journal of Human Resources.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
How Income Changes During Unemployment
(Your Name) has sent you a message from Journal of Human Resources
(Your Name) thought you would like to see the Journal of Human Resources web site.
Citation Tools
How Income Changes During Unemployment
Laura Kawano, Sara LaLumia
Journal of Human Resources Mar 2017, 52 (2) 418-456; DOI: 10.3368/jhr.52.2.0414-6319R2

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Share
How Income Changes During Unemployment
Laura Kawano, Sara LaLumia
Journal of Human Resources Mar 2017, 52 (2) 418-456; DOI: 10.3368/jhr.52.2.0414-6319R2
Twitter logo Facebook logo Mendeley logo
  • Tweet Widget
  • Facebook Like
  • Google Plus One
Bookmark this article

Jump to section

  • Article
    • Abstract
    • I. Introduction
    • II. Data
    • III. Estimation Strategy
    • IV. Results
    • V. Selection into U.I. Receipt
    • VI. Conclusions
    • Acknowledgments
    • Appendix 1 Variable Descriptions
    • Footnotes
    • References
  • Figures & Data
  • Supplemental
  • Info & Metrics
  • References
  • PDF

Related Articles

  • Google Scholar

Cited By...

  • No citing articles found.
  • Google Scholar

More in this TOC Section

  • Nonbinding Peer Review and Effort in Teams
  • Prescription Opioids and Labor Market Pains
  • Careers and Mismatch for College Graduates
Show more Article

Similar Articles

UW Press logo

© 2026 Board of Regents of the University of Wisconsin System

Powered by HighWire