Public Economics Lectures Part 1: Introduction

Topel 1983
Feldstein does not directly show that imperfect exp rating is to blame
for more temp layoffs b/c not using variation in experience rating itself
Topel (1983) uses state/industry variation in financing of UI
Variation in tax rate on firms from min/max thresholds for exp rating
Finds that imperfect subsidization accounts for 31% of all temp layoff
unemployment, a very large effect
See Krueger and Meyer (2002) for review of more recent studies,
which find similar results but smaller magnitudes
Public Economics Lectures () Part 6: Social Insurance 119 / 207