Does State Unemployment Insurance Modernization Explain the Trajectories of Economic Security Among Working Households? Longitudinal Evidence from the 2008 Survey of Income and Program Participation

Chang, Yu‐Ling

doi:10.1007/s10834-020-09661-4

Cited by 4 publications

(4 citation statements)

References 26 publications

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“…Policy-makers need to consider short-term changes to household social security measures during unemployment and implement long-term policies to increase urban household disposable income, especially in China's western and central regions [34]. In addition, we recommend strengthening labor market policies to encourage enterprises to reduce unemployment and supporting the nancial stability of low-income unemployed people through family subsidies, tax reductions and mutual assistance on medical insurance.…”

Section: Baseline Regression Results and Analysismentioning

confidence: 99%

Unemployment and health expenditures in China: New evidence on the unemployment insurance and disposable income

Xu,

Tan,

Nicholas

et al. 2024

Preprint

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Background Research consistently demonstrates that unemployment significantly increases individual health expenditures; However, those unemployed people often exhibit caution in utilizing medical services. The study of the relationship between unemployment and health services utilization is limited, especially in developing countries. Therefore, the objective of this research was to analyse and understand how unemployment influenced health services utilization in the context of unequal regional development in China. Methods Provincial data spanning from 2007 to 2019 were obtained from multiple statistical yearbooks. Both ordinary least squares and fixed effectmodels were employed and adjusted to control for province-specific demographics and socioeconomic factors, ensuring a more accurate estimation. Furthermore, the study delved into the mediating role of unemployment insurance and household disposable income, examining how these factors influence the relationship between the unemployment rate and health expenditures. Rigorous robustness checks were also performed to validate the findings by replacing the explained variable and using instrumental variable method. Results We found that the increasing unemployment rate had a substantial impact on health expenditures with a significant reduction observed in China's central and western regions but not in the eastern region. This phenomenon was linked to the dynamics of household economics, which means household disposable income experienced a corresponding decline as the unemployment rate increased, then in turn depressed health services utilization. Interestingly, the study also found that unemployment insurance acted as a critical financial buffer to offset the downward trend of health expenditures, indicating the positive externality of social security policy. Conclusions Our results indicates that unemployed individuals in China exhibit a conservative approach to health services utilization, which is particularly evident in the central and western regions. During unemployment, policies should be implemented to support the low-income unemployed, especially in regions with an inadequate social security net.

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Section: Baseline Regression Results and Analysismentioning

confidence: 99%

Unemployment and health expenditures in China: New evidence on the unemployment insurance and disposable income

Xu,

Tan,

Nicholas

et al. 2024

Preprint

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“…While only 22 women in our sample across both panels reported receiving UI following a birth, the SIPP is known for underreports of program participation, including UI (Meyer et al, 2009). Scholarship on UI receipt has found that modernization of states' UI systems positively influences workers' economic well‐being (Chang, 2020), and ethnoracial groups and less‐educated workers are more likely to forgo applying for UI benefits after a job loss, even when eligible (Gould‐Werth & Shaefer, 2012). While women cannot legally be denied UI due to pregnancy or a birth if they meet all other UI eligibility requirements, only a handful of states provide nonmonetary “good cause” eligibility specifically for pregnancy (US Department of Labor, 2022).…”

Section: Discussionmentioning

confidence: 99%

Ethnoracial differences in income and safety net patterns among low‐income postpartum families before and during the Great Recession

Bellisle,

Ybarra

2024

Poverty & Public Policy

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In the absence of paid family leave, postpartum low‐income unmarried women often rely on a patchwork of resources from wage earnings, public safety‐net programs, and informal familial support. The Great Recession (2007–2009) caused massive unemployment, with Black and Latine families disproportionately impacted by the economic fallout. Public safety‐net provisions attenuated economic hardship, yet it's unclear if postpartum low‐income women patched together comparable resources during the recession and if there were racially disparities in women's access to resources. Using a sample of low‐income unmarried women who gave birth between 2004 and 2011 from the Survey of Income and Public Program, we examine whether safety‐net provisions and familial support attenuated the fallout of the Great Recession by examining income patterns and safety‐net use (SNAP, WIC, and TANF) among postpartum low‐income unmarried women by ethnoracial group before and during the recession. Our findings suggest the Great Recession had a disparate negative impact on the economic well‐being of postpartum Black women, particularly through lower wage earnings. Increased SNAP income may have attenuated some, but not all, of the deleterious impact of the recession on Black women, and increased WIC participation may also have provided crucial support for addressing food insecurity among Black women. Implications for maternal and infant health and policy are discussed.

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“…With these perks, it is envisaged that workers will not experience poverty, and Indonesia's economy will keep growing. Chang (2020) believes that the economy will continue to function and that employment will be available if unemployed workers receive cash assistance and use it for household needs. In addition, to receive the benefits, participants must continue to search for a job or attend training.…”

Section: Introductionmentioning

confidence: 99%

“…In addition, to receive the benefits, participants must continue to search for a job or attend training. These two benefits will maintain economic security regardless of employment status (Chang, 2020). The JKP benefits are administered by two government entities: BPJS TK and the Ministry of Manpower.…”

Section: Introductionmentioning

confidence: 99%

Impacts of unemployment benefit program on job search duration: Evidence from Indonesia

Wongkaren,

Saragih,

Aninditya

et al. 2024

Econ. J. Emerg. Mark.

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Purpose ― This study examines the impacts of the Unemployment Benefit Program (Jaminan Kehilangan Pekerjaan, JKP) on the duration of job search in Indonesia using internal data sourced from the Employment Social Security Administering Agency (Badan Penyelenggara Jaminan Sosial Tenaga Kerja, BPJS TK).Method ― The study employs the Regression Kinked Design (RKD) model and Ordinary Least Square (OLS) estimation method to analyze the data on laid-off workers who have received the JKP benefits.Findings ― The study finds that, on average, the JKP beneficiaries have a longer duration of job search than laid-off workers who do not receive benefits. An increase in the replacement rate of the JKP benefits is associated with an increased duration of both job search and benefit claims. The RKD plot indicates that a replacement rate lower than 45% may decrease the duration of benefit claims and job searches. Implication ― The study recommends that the government should consider two potential options: (1) maintaining the current level of monetary benefits that leads to a longer job search duration; in other words, the program management must continue providing benefits for the maximum duration offered (up to 6 months), or, (2) reducing the monetary benefits, if BPJS TK aims to reduce the job duration. The results may change if a more robust labor market information system is available.Originality ― This study represents the first attempt to investigate the impact of the Unemployment Benefit Program (JKP) on job search duration in Indonesia. It might also be important to enrich the existing literature on the impact of similar programs in developing countries and countries with large populations.

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Does State Unemployment Insurance Modernization Explain the Trajectories of Economic Security Among Working Households? Longitudinal Evidence from the 2008 Survey of Income and Program Participation

Cited by 4 publications

References 26 publications

Unemployment and health expenditures in China: New evidence on the unemployment insurance and disposable income

Unemployment and health expenditures in China: New evidence on the unemployment insurance and disposable income

Ethnoracial differences in income and safety net patterns among low‐income postpartum families before and during the Great Recession

Impacts of unemployment benefit program on job search duration: Evidence from Indonesia

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