INTERSTATE DIFFERENCES IN UNEMPLOYMENT INSURANCE

Unemployment insurance programs differ across States, potentially affecting locational decisions of firms and the pattern of unemployment across States. This paper provides an investigation of such differences in UI programs across States that avoids the complex task of comparing numerous program parameters (including unobserved differences like enforcement standards). Three key measures of State differences are obtained that permit a sharper delineation of the actual differences that a given worker could expect to encounter if located in an alternative State and that suggest difference in UI taxes a given employer could expect to encounter if located in an alternative State.