RT Journal Article
SR Electronic
T1 How Income Changes During Unemployment
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 418
OP 456
DO 10.3368/jhr.52.2.0414-6319R2
VO 52
IS 2
A1 Laura Kawano
A1 Sara LaLumia
YR 2017
UL http://jhr.uwpress.org/content/52/2/418.abstract
AB We use a panel of tax returns spanning 1999 to 2011 to provide evidence on household experiences during unemployment. A period of unemployment is associated with a 20 percent reduction in annual household wage earnings. Unemployment insurance (U.I.) compensates for half of lost wages. Households also partially compensate using a variety of income sources. Distributions from retirement accounts increase in the short run. Self-employment income and disability insurance payments increase over longer periods. More generous U.I. benefits crowd out wage income and are associated with increased retirement account distributions. This combination of responses is consistent with U.I. benefits lengthening unemployment spells.