Unemployment Insurance Taxes and Benefits in the Largest States Following the Great Recession
*Names in bold indicate Presenter
The post-recession responses of both tax revenue and benefit payments from 2009 through 2014 are examined using summary tabulations and cross section regressions for 51 state programs (the 50 states plus the District of Columbia). Dummy variable tests are conducted to determine whether the responses in the 13 largest states differ significantly from the responses of the other states. The tests focus on possible differential (smaller) responses in the 13 largest states compared to the average responses in the remaining state programs.
The analysis also tests for the effects of indexation on state responses. The taxable wage base is indexed in 19 states while the maximum weekly benefit is indexed in 30 states. The effects of indexation on the growth in the tax base and growth in the maximum weekly benefit are reported.
The paper concludes with an overall summary of the responses in the 13 largest states relative to other states in the state UI system.