Friday, November 9, 2012
Hopkins (Sheraton Baltimore City Center Hotel)
*Names in bold indicate Presenter
The U.S. Department of Labor (USDOL) developed the Reemployment and Eligibility Assessment Initiative in 2005 with the goals of enhancing the rapid reemployment of unemployed workers, eliminating potential overpayments of benefits, and realizing cost savings for UI trust funds. This paper uses state administrative data from Florida, Nevada, and Idaho to assess the effectiveness of REA in reducing UI duration and saving UI Trust Fund resources. Using an experimental design, we find that the REA program was effective in reducing UI durations, assisting claimants find jobs earlier than they would in the absence of the program, and in producing savings for the UI Trust Fund. In fact, the total savings produced by the REA program far exceeded program costs, suggesting that the program is a cost-effective intervention from the perspective of the Federal government. Another key finding of our analyses is that combining REA services with reemployment services into a seamless delivery system, may achieve greater impacts than providing REA services alone.