ERIC Number: ED319983
Record Type: RIE
Publication Date: 1987
Reference Count: N/A
An Incentives Approach to Improving the Unemployment Compensation System.
Burgess, Paul L.; Kingston, Jerry L.
A study addressed the issue of overpayments and other quality problems in the unemployment compensation (UC) program and was current as of June 1987. Principal findings are as follows: (1) overpayments constituted a major problem for the UC system as a whole; (2) high overpayment rates were symptomatic of fundamental problems including difficulties posed by system complexity, adverse incentives for system participants, and the difficulties state agencies have in monitoring claimant compliance with weekly eligibility criteria; (3) the UC system appeared to be excessively complex; (4) federal performance criteria neglected many important aspects of state UC program quality and tended to create adverse incentives by overemphasizing the speed versus the quality of claim processing and payments; (5) adverse incentives within state UC systems typically did not discourage and may even have encouraged ineligible claimants to file for benefits; (6) tax incentives for individual employers to engage in monitoring of individual claimant compliance with eligibility criteria were quite weak; (7) state agency personnel typically had very limited incentives to prevent either underpayments or overpayments or to detect or recover overpayments; and (8) the interaction of excessive program complexity, limited administrative funding, and adverse incentives made it extremely difficult for state agencies to monitor effectively claimant compliance with many UC program requirements, especially those that were to be met on a weekly basis. (A 13-page bibliography is included.) (CML)
Descriptors: Adults, Eligibility, Employer Employee Relationship, Incentives, Program Administration, Program Evaluation, Program Implementation, Quality Control, Taxes, Unemployment, Unemployment Insurance
W. E. Upjohn Institute for Employment Research, 300 South Westnedge Avenue, Kalamazoo, MI 49007 ($13.95 paperback, ISBN 0-88099-048-1; $22.95 clothbound, ISBN 0-88099-049-X).
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Chamber of Commerce of the United States, Washington, DC. National Chamber Foundation.
Authoring Institution: Upjohn (W.E.) Inst. for Employment Research, Kalamazoo, MI.
Note: Sponsored additionally by grants from Burlington Industries, Ford Motor Company, General Motors Corporation, Marriott Corporation, and Pillsbury Company. Figure 3-1 (4 pages) contains small, faint print.