Unemployment Insurance Taxes and Labor Demand: Quasi-Experimental Evidence from Administrative Data

نویسندگان

چکیده

To finance unemployment insurance, states raise payroll tax rates on employers who engage in layoffs. Tax are, therefore, highest for firms after downturns, potentially hampering labor-market recovery. Using full-population, administrative records from Florida, I estimate the effect of these increases firm behavior leveraging a regression kink design schedule. hikes reduce hiring and employment substantially, with no layoffs or wages. The results imply unanticipated costs financing regime which optimal benefit by quarter account 12 percent wake Great Recession. (JEL D22, E24, H25, H32, H71, J23, J65)

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ژورنال

عنوان ژورنال: American Economic Journal: Economic Policy

سال: 2021

ISSN: ['1945-7731', '1945-774X', '1945-7812']

DOI: https://doi.org/10.1257/pol.20190031