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In the paper, using data from before and during the Covid-19 pandemic, the researchers show that the expansion of benefits under the CARES Act only modestly increased self-reported unemployment insurance (UI) recipiency among UI eligible workers, from 27% in 2018 to 36% in 2020/2021. They find that the same demographic groups that historically are less likely to report receiving benefits (less educated, younger, and racial and ethnic minorities) continued to be less likely to receive benefits during the pandemic. In addition they find non-heterosexual workers are also substantially less likely to report receiving benefits. The overarching reason for these disparities is differences in beliefs about eligibility, resulting in likely-eligible workers not applying for benefits. Additionally, they show that union members and individuals who live in states with historically higher recipiency rates are less likely to be misinformed about eligibility, suggesting a role for policy and informational interventions to improve recipiency rates.

Citation

Forsythe, E., Yang, H. (2021). Understanding Disparities in Unemployment Insurance Recipiency. Chief Evaluation Office, U.S. Department of Labor.

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This study was part of CEO’s Summer Data Challenge on Equity and Underserved Communities, and was produced outside of CEO’s standard research development process.