Repeat use in the U.S. unemployment insurance system.

UNEMPLOYMENT insurance; LAYOFFS; LABOR supply; EMPLOYMENT of older people; BLUE collar workers

This article uses administrative data from seven states to examine repeat use in the U.S. unemployment insurance (UI) system in 2003, a period of moderate unemployment. Findings show that more than half of recipients on temporary layoff and nearly a third of displaced recipients became repeat users, that is, started a new UI claim within a year of the end of their initial claim. Repeat use was more prevalent for workers with weak prior attachment to the workforce, those employed in cyclical sectors or blue-collar jobs, low-education workers, and older workers. Further analysis shows that repeat users collected substantially higher benefit amounts than nonrepeat users, causing a substantial burden on the UI Trust Fund. Finally, the article presents evidence that providing reemployment assistance to displaced recipients may be an effective policy for reducing repeat use and alleviating its burden on the UI Trust Fund. [ABSTRACT FROM AUTHOR]

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