Who helps the unemployed? Workers’ receipt of public and private transfers

Kathryn Anne Edwards

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Who helps the unemployed? Workers’ receipt of public and private transfers

Kathryn Anne Edwards

| 17 ago 2020

IZA Journal of Labor Economics

Volume 9 (2020): Numero 1 (March 2020)

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Pubblicato online: 17 ago 2020

Pagine: -

DOI: https://doi.org/10.2478/izajole-2020-0004

Parole chiave
Unemployment, unemployment insurance, transfers, racial inequality

© 2020 Kathryn Anne Edwards, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Share of unemployed individuals receiving a transfer from family (top) and unemployment insurance (bottom), heads of household and spouses aged 19–59 years, 1976–2013 PSID.Notes: Data are from the 1976–2013 waves of the PSID. Sample comprises 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year.

Coefficients from regression of family transfers on years since unemployment, heads of household and spouses aged 19–59 years, 1976–2013 PSID.Notes: Data are from the 1976–2013 waves of the PSID. Sample comprises 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. Figure shows coefficient estimates of regression of family transfer on time since unemployment; regressions include covariates, individual fixed effects, and year fixed effects.

Coefficients from regression of family transfers on time since unemployment, spell due to displacement (top) and voluntary spell (bottom), heads of household and spouses aged 19–59 years, 1976–2013 PSID.Notes: Data are from the 1976–2013 waves of the PSID. Sample comprises 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. The regressions of family transfer on time since unemployment include covariates, individual fixed effects, and year fixed effects.

Replacement rate and receipt of unemployment insurance benefits and family cash transfers among unemployed workers, heads of household and spouses aged 19-59 years, 1976-2013 PSID

	Replacement rate			Share reporting receipt
	Potential weekly UI benefit	Reported 6-month UI benefit	Reported 6-month transfer	UI benefits	Family cash transfer	Both UI and family	Neither UI nor family

	(1)	(2)	(3)	(4)	(5)	(6)	(7)
All	0.432	0.277	0.411	0.286	0.153	0.029	0.533
Age, years
29	0.442	0.288	0.379	0.216	0.209	0.030	0.544
39	0.430	0.258	0.413	0.326	0.129	0.032	0.514
49	0.421	0.265	0.471	0.339	0.097	0.025	0.538
59	0.423	0.319	0.568	0.376	0.075	0.019	0.531
Race
Black	0.428	0.276	0.303	0.237	0.162	0.027	0.574
White	0.435	0.270	0.511	0.336	0.149	0.032	0.483
Gender
Male	0.429	0.261	0.293	0.361	0.149	0.032	0.459
Female	0.436	0.307	0.545	0.205	0.157	0.025	0.613
Family
Married	0.433	0.276	0.412	0.310	0.109	0.024	0.557
Divorced	0.430	0.259	0.378	0.293	0.187	0.041	0.479
Never married	0.432	0.304	0.432	0.213	0.253	0.034	0.499
Education
LTHS	0.437	0.293	0.354	0.264	0.120	0.015	0.601
HS	0.440	0.285	0.334	0.298	0.139	0.027	0.536
Some college	0.433	0.268	0.439	0.299	0.171	0.037	0.492
BA or higher	0.408	0.248	0.555	0.258	0.196	0.036	0.510
White HS	0.445	0.272	0.358	0.377	0.124	0.031	0.467
Black HS	0.433	0.291	0.303	0.230	0.157	0.023	0.590
White BA	0.402	0.255	0.650	0.261	0.199	0.033	0.508
Black BA	0.419	0.218	0.187	0.255	0.194	0.043	0.508

Coefficient estimates from regression of family transfer receipt on unemployment spell, heads of household and spouses aged 19–59 years, 1976–2013 PSID

	Binary transfer receipt		Real transfer amount (in $2013)
	(1)	(2)	(3)	(4)
Unemployment (U)	0.039*** (0.002)		70.921*** (12.284)
U displaced		0.037*** (0.004)		49.332** (16.624)
U voluntary		0.047*** (0.004)		66.902*** (20.292)
U not specified		0.034*** (0.003)		81.649*** (17.184)
Becomes homeowner	0.006* (0.003)	0.006* (0.003)	219.624*** (35.85)	219.577*** (35.848)
Gets married	0.017*** (0.005)	0.017*** (0.005)	5.077 (39.528)	5.084 (39.535)
Gets divorced	0.004 (0.005)	0.004 (0.005)	27.743 (31.09)	27.701 (31.089)
(separated)
Becomes a parent	0.004 (0.003)	0.004 (0.003)	-11.928 (28.081)	-11.911 (28.078)
Leaves school	0.071*** (0.006)	0.071*** (0.006)	394.865*** (56.53)	394.850*** (56.543)
Becomes disabled	-0.01 (0.007)	-0.01 (0.007)	-4.644 (32.211)	-5.056 (32.207)
Homeowner	-0.016*** (0.002)	-0.016*** (0.002)	1.389 (14.459)	1.3 (14.463)
Married	-0.061*** (0.004)	-0.061*** (0.004)	-83.636** (25.677)	-83.729** (25.67)
Divorced/separated	-0.013* (0.005)	-0.013* (0.005)	16.409 (31.815)	16.352 (31.813)
Has children	0.009*** (0.002)	0.009*** (0.002)	59.668*** (17.249)	59.755*** (17.247)
Student	0.050*** (0.007)	0.049*** (0.007)	234.176*** (57.261)	234.371*** (57.218)
Disabled HH member	0.027*** (0.004)	0.027*** (0.004)	53.140** (18.225)	52.949** (18.221)
State UR	0.002** (0.001)	0.002** (0.001)	9.492** (3.445)	9.553** (3.443)
Age	-0.012*** (0.001)	-0.012*** (0.001)	-34.083*** (4.792)	-34.217*** (4.794)
Other X_it	Y	Y	Y	Y
Individual and year fixed effects	Y	Y	Y	Y
Mean of dependent variable	8.0%	8.0%	$242.99	$242.99
N	278,794	278,794	278,794	278,794

Coefficient estimate of regression of family transfer receipt on unemployment, by demographic subgroup, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Group	γ Estimate	Mean	Percentage increase	Group	γ Estimate	Mean	Percentage increase
Aged 19–29 years	0.044***	0.14	31%	Married	0.027***	0.053	51%
SE	0.004			SE	0.002
Aged 30–39 years	0.034***	0.068	50%	Divorced	0.050***	0.108	46%
SE	0.004			SE	0.008
Aged 40–49 years	0.023***	0.049	47%	Never married	0.054***	0.178	30%
SE	0.004			SE	0.006
Aged 50–59 years	0.015**	0.039	38%	Less than HS	0.022***	0.072	31%
SE	0.005			SE	0.005
Male	0.043***	0.076	57%	HS degree	0.036***	0.071	51%
SE	0.003			SE	0.003
Female	0.035***	0.083	42%	Some college	0.039***	0.089	44%
SE	0.003			SE	0.004
Black	0.037***	0.093	40%	BA or higher	0.061***	0.086	71%
SE	0.004			SE		0.006
White	0.041***	0.073	56%
SE	0.003

Share of observed family transfers concurrent with life events, heads of household and spouses aged 19–59 years, 1976–2013 PSID

	Share of transfers	Conditional transfer size in $2013
Exiting college	0.057 (0.231)	$4,015 ($7,749)
Getting married	0.038 (0.191)	$2,796 ($5,858)
Becoming separated	0.056 (0.229)	$2,565 ($4,775)
Buying a house	0.047 (0.211)	$5,795 ($12,708)
Having a child	0.054 (0.226)	$3,094 ($7,769)
Unemployed	0.236 (0.425)	$2,060 ($4,158)
None of the above	0.599 (0.490)	$3,034 ($6,479)

Coefficient estimates of regressions of family transfer receipt on unemployment insurance receipt, actual and instrumented, heads of household and spouses aged 19–59 years, 1976–2013 PSID

	Observed	IV	IV	IV

	All years	All years	1976–1995	1996–2013

	(1)	(2)	(3)	(4)
Unemployment	0.047***	0.046***	0.035***	0.057**
SE	0.003	0.01	0.007	0.018
U*UI	-0.026***	-0.022	-0.013	-0.042
SE	0.004	0.028	0.021	0.050
X_it	Y	Y	Y	Y
Individual fixed effects	Y	Y	Y	Y
State × Year fixed effects	Y	Y	Y	Y
Wage spline	Y	Y	Y	Y
N	225,298	225,298	104,434	120,864
Unemployment	81.996***	126.348	104.796*	268.452
SE	16.88	81.71	42.05	171.039
U*UI	-44.413	-172.286	-199.33	-504.385
SE	23.553	233.246	120.452	480.321
X_it	Y	Y	Y	Y
Individual fixed effects	Y	Y	Y	Y
State × Year fixed effects	Y	Y	Y	Y
Wage spline	Y	Y	Y	Y
N	225,298	225,298	104,434	120,864

Coefficient estimate of regression of family transfer receipt on unemployment, by length of spell, heads of household and spouses aged 19–59 years, 1976–2013 PSID

	All spells	Displaced	Voluntary	Not specified
	(1)	(2)	(3)	(4)
T_it = Dummy
Short spell	0.027***	0.022**	0.049***	0.015**
SE	0.004	0.008	0.009	0.005
Medium spell	0.035***	0.032***	0.045***	0.029***
SE	0.003	0.004	0.005	0.003
Long spell	0.061***	0.059***	0.052***	0.065***
SE	0.004	0.007	0.01	0.006
T_it = Amount
Short spell	44.339	-19.442	82.353	48.26
SE	24.406	31.863	50.449	34.488
Medium spell	61.758***	35.02	54.571*	78.637***
SE	14.87	20.28	23.203	22.913
Long spell	118.278***	118.122***	91.879*	122.748***
SE	19.319	28.926	41.3	26.474

Coefficient estimate of regression of family transfer receipt on unemployment, by variable construction, heads of household and spouses aged 19–59 years, 1976–2013 PSID

	Binary transfer receipt			Real transfer amount (in $2013)
	Own	Head	Spouse	Own	Head	Spouse

	(1)	(2)	(3)	(4)	(5)	(6)
Unemployment	0.036***	0.044***	0.006	67.603***	64.481***	1.456
SE	0.002	0.003	0.002	9.979	11.479	2.955
Other X_it	Y	Y	Y	Y	Y	Y
Individual and Year fixed effects	Y	Y	Y	Y	Y	Y
Mean of dependent variable	6.0%	7.3%	0.9%	$162.60	$209.62	$33.38
N	278,794	173,125	105,669	278,794	173,125	105,669

eISSN:: 2193-8997
Lingua:: Inglese

Frequenza di pubblicazione:: Volume Open
Argomenti della rivista:: Business and Economics, Political Economics, Microeconomics, Macroecomics, Economic Policy, Mathematics and Statistics for Economists, Econometrics

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Who helps the unemployed? Workers’ receipt of public and private transfers

Pubblicato online: 17 ago 2020

Pagine: -

DOI: https://doi.org/10.2478/izajole-2020-0004

Parole chiave
Unemployment, unemployment insurance, transfers, racial inequality

© 2020 Kathryn Anne Edwards, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Figure 1

Figure 2

Figure 3

Replacement rate and receipt of unemployment insurance benefits and family cash transfers among unemployed workers, heads of household and spouses aged 19-59 years, 1976-2013 PSID

Coefficient estimates from regression of family transfer receipt on unemployment spell, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Coefficient estimate of regression of family transfer receipt on unemployment, by demographic subgroup, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Share of observed family transfers concurrent with life events, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Coefficient estimates of regressions of family transfer receipt on unemployment insurance receipt, actual and instrumented, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Coefficient estimate of regression of family transfer receipt on unemployment, by length of spell, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Coefficient estimate of regression of family transfer receipt on unemployment, by variable construction, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Who helps the unemployed? Workers’ receipt of public and private transfers

Pubblicato online: 17 ago 2020

Pagine: -

DOI: https://doi.org/10.2478/izajole-2020-0004

Parole chiaveUnemployment, unemployment insurance, transfers, racial inequality

© 2020 Kathryn Anne Edwards, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Figure 1

Figure 2

Figure 3

Replacement rate and receipt of unemployment insurance benefits and family cash transfers among unemployed workers, heads of household and spouses aged 19-59 years, 1976-2013 PSID

Coefficient estimates from regression of family transfer receipt on unemployment spell, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Coefficient estimate of regression of family transfer receipt on unemployment, by demographic subgroup, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Share of observed family transfers concurrent with life events, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Coefficient estimates of regressions of family transfer receipt on unemployment insurance receipt, actual and instrumented, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Coefficient estimate of regression of family transfer receipt on unemployment, by length of spell, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Coefficient estimate of regression of family transfer receipt on unemployment, by variable construction, heads of household and spouses aged 19–59 years, 1976–2013 PSID

Parole chiave
Unemployment, unemployment insurance, transfers, racial inequality