Reforming the Unemployment Insurance System to Promote Entrepreneurship PDF Download

Author: United States. Congress. House. Committee on Small Business. Subcommittee on Regulation, Business Opportunities, and Energy
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 66

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Author: United States. Congress. House. Committee on Small Business. Subcommittee on Regulation, Business Opportunities, and Energy
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 64

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Author: David E. Balducchi
Publisher: W.E. Upjohn Institute
ISBN: 0880996528
Category : Political Science
Languages : en
Pages : 247

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Book Description
The Unemployment Insurance (UI) system is a lasting piece of the Social Security Act which was enacted in 1935. But like most things that are over 80 years old, it occasionally needs maintenance to keep it operating smoothly while keeping up with the changing demands placed upon it. However, the UI system has been ignored by policymakers for decades and, say the authors, it is broken, out of date, and badly in need of repair. Stephen A. Wandner pulls together a group of UI researchers, each with decades of experience, who describe the weaknesses in the current system and propose policy reforms that they say would modernize the system and prepare us for the next recession.

Author: United States. Congress. House. Committee on Ways and Means. Subcommittee on Public Assistance and Unemployment Compensation
Publisher:
ISBN:
Category : Employment stabilization
Languages : en
Pages : 292

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Author: Adriana D. Kugler
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Helping unemployed workers return to work has long been a policy challenge in the United States, and the urgency of the problem tends to increase during and after economic downturns. Immediately after the Great Recession the average duration of unemployment reached forty weeks, and even by the end of 2014 the average duration of unemployment remained above thirty weeks -- higher than the worst it had been during previous periods of recession. Such spells of long-term unemployment impose enormous costs on individuals, their families, and the economy as a whole; the longer an individual is out of work, the harder it is for her to find new employment. While the unemployment insurance system is structured to provide benefits to unemployed workers while they search for work, many of its eligibility requirements can effectively discourage a large number of unemployed workers from pursuing job opportunities that may be to their advantage. This paper offers three pilot programs to reform the unemployment system by encouraging different ways to return to work. The first program would allow the unemployed to continue claiming benefits while receiving entrepreneurial training and other assistance for setting up a business. The second program would support the unemployed through temporary positions and internships that might lead to full-time jobs. The third program would provide partial benefits to claimants who accept part-time jobs. By helping the unemployed transition back to work, these programs have the potential to break the cycle of long-term unemployment before it starts.

Author: Lori G. Kletzer
Publisher:
ISBN:
Category : Labor market
Languages : en
Pages : 0

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"Despite significant changes in U.S. labor market, the basic structure of the nation's unemployment insurance (UI) program has remained unchanged since it was created in 1935. The current system is in need for reform in order to meet the needs of a twenty-first century workforce. Shortfalls in the current program fall into four categories: (1) overly restrictive eligibility criteria have resulted in low recipience rates; (2) benefit levels are low; (3) the federal tax system used to finance the program is regressive; (4) and the mechanism to automatically extend UI during periods of prolonged economic downsturns is broken. As a result of these and other factors, only about one-third of unemployed workers currently receive assistance under the UI program, and that assistance falls short of the original goal of replacing at least half of previous earnings. In addition, the system provides no assistance either to the self-employed or to those who become reemployed at lower wages. In this paper we propose three broad reforms, each designed to help the UI system better meet the needs of a twenty-first century workforce. First, we propose strengthening the federal role in UI by setting federal standards that would aim to raise average national benefit levels and average national recipiency rates. Expansion in the program would be financed by raising the FUTA taxable wage base over time to 45,000 to for inflation over recent decades. Second, we propose a wage-loss insurance program, as part of the UI program, to provide an earnings supplement for those workers who become reemployed at a wage lower than the wage they earned at their previous job. Finally, we propose allowing self-employed workers, and perhaps others, to contribute up to 0.25 percent of annual income, up to 200 per year, into Personal Unemployment Accounts (PUAs). These contributions would be matched by the federal government and could be withdrawn later to cushion severe income losses or to finance training or job research"--Page 2.

Author: Oren M. Levin-Waldman
Publisher: Levy Economics Institute of Bard College
ISBN:
Category : Business & Economics
Languages : en
Pages : 56

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Author: Johan Hombert
Publisher:
ISBN:
Category : Entrepreneurship
Languages : en
Pages : 69

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Book Description
We study a large-scale French reform that provided generous downside insurance for unemployed individuals starting a business. We study whether this reform affects the composition of people who are drawn into entrepreneurship. New firms started in response to the reform are, on average, smaller, but have similar growth expectations and education levels compared to start-ups before the reform. They are also as likely to survive or to hire. In aggregate, the effect of the reform on employment is largely offset by large crowd-out effects. However, because new firms are more productive, the reform has the impact of raising aggregate productivity. These results suggest that the dispersion of entrepreneurial abilities is small in the data, so that the facilitation of entry leads to sizable Schumpeterian dynamics at the firm-level.

Author: Laurie J. Bassi
Publisher: JAI Press Incorporated
ISBN: 9780762305070
Category : Political Science
Languages : en
Pages : 334

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Book Description
Presents a research in employment policy. This title addresses the reform of the unemployment insurance system.

Author: Mr.Tom Krebs
Publisher: International Monetary Fund
ISBN: 1475592248
Category : Business & Economics
Languages : en
Pages : 85

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Book Description
This paper studies the effect of two labor market institutions, unemployment insurance (UI) and job search assistance (JSA), on the output cost and welfare cost of recessions. The paper develops a tractable incomplete-market model with search unemployment, skill depreciation during unemployment, and idiosyncratic as well as aggregate labor market risk. The theoretical analysis shows that an increase in JSA and a reduction in UI reduce the output cost of recessions by making the labor market more fluid along the job finding margin and thus making the economy more resilient to macroeconomic shocks. In contarst, the effect of JSA and UI on the welfare cost of recessions is in general ambiguous. The paper also provides a quantitative appliation to the German labor market reforms of 2003-2005, the so-called Hartz reforms, which improved JSA (Hartz III reform) and reduced UI (Hartz IV reform). According to the baseline calibration, the two labor market reforms led to a substantial reduction in the output cost of recessions and a moderate reduction in the welfare cost of recessions in Germany.