DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 36-99
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	GRACE A. KILBANE Director Unemployment Insurance Service
SUBJECT	:	Study of Unemployment Insurance Exhaustees

1. Purpose. To advise States of a planned study of Unemployment Insurance exhaustees that will involve the collection of data from 25 States.

2. References. Walter Corson and Mark Dynarski, A Study of Unemployment Insurance Recipients and Exhaustees: Findings from a National Survey, Mathematica Policy Research, Inc., UIOP 90-3.

3. Background. The Department has contracted with Mathematica Policy Research (MPR) of Princeton, New Jersey, to conduct a study of UnemploymentInsurance (UI) exhaustees. One objective of the study is to examine the extent to which recent changes in the U.S. labor market have affected the composition of UI recipients who exhaust benefits and have influenced their post-exhaustion labor market experiences. Another objective is to explore recipients' experiences with the delivery of reemployment services (e.g., orientation, assessment, counseling, job referral, job search workshop/job club, and education/training) and examine whether changes in the workforce development system have affected these experiences.

   To meet these objectives, the study will (1) attempt to identify factors that explain why recipients exhaust their UI benefit entitlements; (2) examine the labor-market experiences of exhaustees compared to nonexhaustees; (3) assess the extent of recipients' participation in reemployment services and in education and training; (4) determine how patterns in recipient characteristics, labor-market experiences, and participation in reemployment services have changed over time, especially over the past decade; and (5) consider the implications of the findings for UI benefit and reemployment services policies and programs.

   To examine these issues in a reliable and valid manner, the study needs to collect UI and other administrative records for random samples of approximately 18,000 UI recipients drawn from 25 States. It also will require calls for the collection of more detailed survey data from subsamples of 2,000 exhaustees and 2,000 nonexhaustees. The survey will be conducted between October 1999 and March 2000. Participation is voluntary and confidential; all data will be presented only in aggregate form and microdata sets will be stripped of all identifying factors. OMB clearance is currently being sought.

   Full participation by the States selected for the study is critically important to ensure that the study results are representative of the national population of UI recipients-both exhaustees and nonexhaustees.

   Staff members of MPR will be contacting the selected states in July to discuss their participation in the study. The objective of these contacts will be to discuss:

   • The use of State data for selection of the survey sample and for analysis.

   • The method of selecting a State sample and how the data would be transferred to MPR.

   • Any other problems that may need to be resolved.

4. Action. If selected for the study, the Department encourages State UI agencies to cooperate fully with MPR to ensure that valid and accurate data are provided for the study.

5. Inquiries. Direct any questions to the National Office, attention John Heinberg or Anissa Holm, Project Officers. John Heinberg can be reached at (202) 208-5915 x147 or jdheinberg@doleta.gov. Anissa Holm can be reached at (202) 208-5915 x201 or aholm@doleta.gov.