scholarly journals The Adequacy of Unemployment Insurance Benefits

Author(s):  
Christopher J. O'Leary
1984 ◽  
Vol 16 (7) ◽  
pp. 863-877 ◽  
Author(s):  
M I Howland

In this paper the author develops and tests a model of regional responses to national business-cycles. The model divides cyclical decline in each state into two sectors: a basic sector and a nonbasic sector. The industrial mix, capital—labor ratio, age of capital stock, level of unemployment insurance benefits, labor shortage, and extent of labor-force unionization of a state are hypothesized to influence the response to national recessions by the economy of a state. Employment decline in the nonbasic sector of the economy of a state is a function of employment decline in basic industries and is transmitted through a short-run multiplier. The model is tested on data from five post World War 2 recessions between 1950 and 1975. The findings indicate that industry mix at the two-digit Standard Industrial Code level explains 36% of the across-state variation in cyclical employment. The results also indicate that an old capital-stock, a nonunion labor force, and generous unemployment insurance benefits promote cyclical stability in state economies.


ILR Review ◽  
1964 ◽  
Vol 17 (4) ◽  
pp. 660
Author(s):  
Leo M. Orwicz ◽  
Harry Malisoff

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