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The impact of unemployment insurance taxes on wages
Institution:1. German Institute for Economic Research (DIW Berlin), Mohrenstr. 58, 10117 Berlin, Germany;2. Deutsche Bundesbank, Wilhelm-Epstein-Str. 14, 60431 Frankfurt am Main, Germany;1. MINES ParisTech, Centre des Matériaux, BP87 91003 Evry, France;2. ENSTA ParisTech, Unité Chimie et Procédés, 828 Bd des Maréchaux, 91762 Palaiseau Cedex, France;1. School of Computing Sciences, University of East Anglia, Norwich, NR4 7TJ, UK;2. Inria Grenoble – Rhône-Alpes; Inovallée 655, avenue de l''Europe, Montbonnot, 38334 Saint Ismier cedex, France;3. Université de Lyon, F-69000, Lyon; Université Lyon 1; CNRS, UMR5558; 43 Boulevard du 11 Novembre 1918, 69622 Villeurbanne cedex, France;1. Laboratoire des Signaux et Systèmes (L2S), CNRS-SUPELEC, 3 rue Joliot Curie, 91192 Gif-sur-Yvette, France;2. Department of Electrical & Electronics Engineering, Bilkent University, Ankara, Turkey;3. CEA, LIST, Interactive Robotics Laboratory, Fontenay aux Roses, F-92265, France;1. Department of Pediatrics, University of Texas Medical Branch, 301 University Blvd., Galveston, TX 77555-0366, USA;2. Department of Biochemistry and Molecular Biology, University of Texas Medical Branch, 301 University Blvd., Galveston, TX 77555-1068, USA;3. Sealy Center for Structural Biology and Molecular Biophysics, Department of Biochemistry and Molecular Biology, University of Texas Medical Branch, 301 University Blvd., Galveston, TX 77555-1068, USA;4. Isis Clinical Research, LLC, 6836 Austin Center Blvd. Ste 180, Austin, TX 78731, USA;1. New York University, Stern School, USA;2. Harvard University, Soldiers Field, Boston, MA 02163, USA;3. University of Minnesota, USA;4. The George Washington University, GW School of Business, USA
Abstract:This paper examines the incidence of state unemployment insurance taxes on wages paid to workers in various demographic groups. The empirical work matches state level measures of unemployment insurance tax and benefit variables to data aggregated from the Current Population Survey on worker earnings for the period 1992 to 2002. Econometric evidence presented in the paper supports the paper's main hypothesis that UI tax rate structure has its greatest adverse impact on less mobile workers (prime age married women and young workers) and little impact on more mobile workers (prime age men).
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