Simulation Analysis of the Louisiana Unemployment Insurance Tax System: Final Report

Authors

Christopher J. O'Leary, W.E. Upjohn Insitute for Employment ResearchFollow

Upjohn Author ORCID Identifier

https://orcid.org/0000-0002-3372-7527

Publication Date

9-2013

Series

Upjohn Institute Technical Report No. 21-039

DOI

10.17848/tr21-039

Abstract

Unemployment insurance (UI) is a federal-state program designed to provide adequate partial income replacement to workers during temporary periods of involuntary joblessness. The UI system acts as an automatic macroeconomic stabilizer, increasing spending during recessions and reducing aggregate spending during recoveries. The program helps prevent recipients from slipping into poverty during unemployment.

This report reviews the recent history of financing regular UI benefits in Louisiana, assesses the adequacy of financing, and suggests areas where the financing system could be improved. The project aims to identify possible system reforms that will 1) assure long-term financial stability, 2) increase tax equity, and 3) simplify procedures.

Issue Date

September 2013

Note

Upjohn project #35249

Sponsorship

Office of Unemployment Insurance, Louisiana Workforce Commission

Subject Areas

UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS; Unemployment insurance