AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Race, Ethnicity, and Nonpayment of Unemployment Insurance: The Role of the Employer
AEA Papers and Proceedings
(pp. 393–399)
Abstract
We examine worker-employer disputes over unemployment insurance (UI) claims and their relationship to benefit nonpayment. Administrative UI records allow us to use workers who file multiple claims to control for unobserved worker heterogeneity. We observe strong employer effects on whether claims are disputed, and weak evidence that employers dispute Black workers’ claims more often than White workers’ claims. But disputes are only weakly related to nonpayment, and nonpayment associated with employer disputes does not differ by race or ethnicity. We speculate that the UI agency mediates employer disputes to mitigate racial differences in UI nonpayment.Citation
Lachowska, Marta, and Stephen A. Woodbury. 2026. "Race, Ethnicity, and Nonpayment of Unemployment Insurance: The Role of the Employer." AEA Papers and Proceedings 116: 393–399. DOI: 10.1257/pandp.20261094Additional Materials
JEL Classification
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J64 Unemployment: Models, Duration, Incidence, and Job Search
- J65 Unemployment Insurance; Severance Pay; Plant Closings