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Since we are interested in whether UI income support helps prevent return to TANF among those who lose jobs, from the cohort samples of those leaving TANF for employment we identify sub-samples of leavers beginning new spells of unemployment. Use of UI is examined among those experiencing unemployment. The definition of unemployment applied is as defined above: a calendar quarter with less than $100 in earnings.
Mean quarterly rates of new unemployment among TANF leavers are reported in Table 7. Also listed in the table are the cumulative annual rates of unemployment in the first three years after leaving TANF. Quarterly percentages of new unemployment are highest in the first year after TANF exit in the range 10.5 to 13.8 across cohorts. Rates are similar across states and rising as the labor market softens in the economic slowdown after 2000. The quarterly unemployment rates decline in the second year after TANF exit to a range from 8.2 to 10.5, and fall to slightly lower levels in the third year to a range from 7.6 to 9.8. Falling unemployment rates in the second and third years are observed despite the softening labor market in 2001.
| 1997 Cohorts | 2000 Cohorts | 2001 Cohorts | 2003 Texas |
All Cohorts |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Florida | Texas | Florida | Michigan | Ohio | Texas | Florida | Michigan | Ohio | Texas | |||
| Mean of Quarters | ||||||||||||
| Year 1 | 10.5 | 11.6 | 12.1 | 13.8 | 13.1 | 12.3 | 13.1 | 13.8 | 13.7 | 12.9 | 13.2 | 12.6 |
| Year 2 | 9.5 | 8.2 | 10.5 | 9.9 | 9.6 | 9.4 | 10.4 | 9.5 | 9.2 | 9.2 | 8.5 | 9.2 |
| Year 3 | 9.6 | 7.6 | 9.8 | 8.4 | 8.2 | 8.3 | 8.1 | 7.9 | 7.8 | 8.3 | ||
| Cumulative (*1) | ||||||||||||
| Year 1 | 39.2 | 41.3 | 44.8 | 50.6 | 48.3 | 45.4 | 48.4 | 50.8 | 50.5 | 45.7 | 46.0 | 45.9 |
| Year 2 | 60.0 | 58.1 | 67.4 | 69.1 | 66.1 | 64.3 | 70.0 | 69.0 | 67.1 | 64.2 | 62.8 | 64.2 |
| Year 3 | 73.4 | 67.5 | 79.5 | 78.0 | 74.9 | 73.8 | 77.9 | 73.2 | 71.9 | 73.4 | ||
| Sample Size | 51,276 | 94,662 | 29,873 | 42,883 | 59,881 | 50,229 | 23,706 | 36,934 | 50,823 | 55,259 | 60,901 | 556,427 |
| Note: (*1) The cumulative unemployment rate is the percentage of persons in the cohort who become newly unemployed at any time after TANF Exit. For example, in the Florida 1997 cohort, 73.4 percent of persons in the cohort had become newly unemployed at some point in the first 3 years after TANF exit. Also, the mean cumulative unemployment rate through 3 years across all cohorts (73.4 percent) is computed over only those cohorts for which data are observed for a full 3 years after TANF exit. If all cohorts were used, including the 2001 cohorts for Florida and Ohio for which only eight and ten quarters of data are respectively observed after TANF exit, then the mean cumulative rate across all cohorts would be 73.1 percent as reported in Table 11. | ||||||||||||
Cumulative annual rates indicate the percentage experiencing unemployment in the first year after TANF exit ranged from 39.2 to 50.8 (see Figure 6). The cumulative unemployment rates for TANF exiters rise in the second year to a range from 58.1 to 70.0 percent. By the third year after TANF exit, the cumulative percentages experiencing joblessness ranged between 67.5 and 77.9 of TANF exiters in the cohort samples. Annual and cumulative rates of unemployment are similar across the four states. Rates rose slightly with the economic slowdown.
Figure 6.
Cumulative Percentages of TANF Leaver Cohorts Who Experience Unemployment
by Year After TANF Exit
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Among those identified as newly unemployed in each of the analysis cohorts we examine patterns of application for UI benefits. Table 8 lists UI application rates for each of the TANF leaver cohorts in the first three years after TANF exit (see also Figure 7). Also, reported in the table is the total number from the cohort experiencing a new spell of unemployment and the total proportion of them applying for UI benefits combined over the three years after leaving TANF.
Figure 7.
UI Application Rates by Year from TANF Exit When First Newly
Unemployed
(percent)
Analysis of involvement with UI is restricted to those leaving TANF for employment who subsequently experience unemployment. For the cohorts listed in Table 8, between 16,599 and 63,937 experienced new spells of unemployment. UI application rates range from 17.6 percent to 42.7 percent. In the second year after leaving TANF, UI application rates tend to be higher than in the first year. This may be due to an understanding that adequate earnings are required to qualify for UI benefits and such earnings only accrue after a longer period of labor market experience. There are much smaller differences in UI application rates between the second and third year after TANF exit.(1)
Within states, cumulative UI application rates showed an increase in Florida between 1997 and 2000 cohorts, but were fairly stable over time among the cohorts. There were only small increases in cumulative UI application rates between the 2000 and 2001 cohorts despite the economic slowdown in 2001. A clear ranking of UI application rates over the 3 year period following TANF exit emerges across states. Among newly unemployed TANF leavers, the highest UI application rates were observed for Florida, followed by Texas, Michigan, and Ohio.
| 1997 Cohorts | 2000 Cohorts | 2001 Cohorts | 2003 Texas |
All Cohorts |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Florida | Texas | Florida | Michigan | Ohio | Texas | Florida | Michigan | Ohio | Texas | |||
| Time from Exit | ||||||||||||
| Year 1 | 13.8 | 17.2 | 35.8 | 14.2 | 13.8 | 18.1 | 38.9 | 20.4 | 15.6 | 21.5 | 19.0 | 19.0 |
| Year 2 | 42.2 | 27.0 | 52.3 | 32.2 | 22.4 | 32.1 | 50.5 | 31.5 | 26.3 | 33.3 | 26.4 | 32.0 |
| Year 3 | 42.1 | 29.3 | 50.2 | 36.3 | 28.4 | 38.1 | 35.1 | 36.0 | 47.4 | 37.0 | ||
| Unemployed | 37,621 | 63,937 | 23,755 | 33,460 | 44,835 | 37,072 | 16,599 | 28,756 | 36,515 | 40,469 | 43,462 | 406,481 |
| UI Applicants | 10,158 | 13,616 | 10,136 | 7,022 | 7,885 | 8,984 | 7,051 | 7,089 | 7,045 | 10,646 | 9,128 | 98,760 |
| Rate (*1, percent) | 27.0 | 21.3 | 42.7 | 21.0 | 17.6 | 24.2 | 42.5 | 24.7 | 19.3 | 26.3 | 21.0 | 24.3 |
| Note: (*1) Based on applications for UI benefits relative to the first unemployment after TANF exit. A five calendar quarter period is checked for a new UI claim starting with the quarter before the quarter of new unemployment through three quarters after new unemployment. The UI application date is the first UI benefit year begin (BYB) date in that time period. | ||||||||||||
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To learn how quickly TANF leavers contact the UI system after becoming unemployed, the time lag from job separation to the date of UI application — also called the UI benefit year begin (BYB) date — was measured.(2) Necessary data were available only for UI claimants in Florida, Michigan, and the Texas 2003 cohorts. Some of these claimants did not receive UI benefit payments, but we used the BYB records showing their date of UI claim. The time lag was measured in weeks. Table 9 summarizes the time lags from job separation to UI application (BYB date) among cohorts overall and grouped by year after TANF exit when new unemployment occurred (see also Figure 8).
| New Unemployment | 1997 Florida |
2000 Cohorts | 2001 Cohorts | 2003 Texas |
All Cohorts |
||
|---|---|---|---|---|---|---|---|
| Florida | Michigan | Florida | Michigan | ||||
| Year 1 after Exit | 8.6 | 6.2 | 5.2 | 7.1 | 4.8 | 5.8 | 6.5 |
| Year 2 after Exit | 5.3 | 7.1 | 5.1 | 7.4 | 5.3 | 5.5 | 5.9 |
| Year 3 after Exit | 3.6 | 6.6 | 5.5 | 4.5 | 4.3 | 4.9 | |
| Year 4 after Exit | 5.2 | 4.6 | 5.0 | ||||
| Total UI Applicants (*1) | 11,915 | 9,601 | 7,796 | 6,499 | 6,921 | 3,738 | 46,470 |
| Overall Mean Lag | 5.6 | 6.6 | 5.2 | 7.2 | 4.9 | 5.1 | 5.8 |
| Overall Median Lag | 2.0 | 2.0 | 1.0 | 3.0 | 1.0 | 1.0 | 2.0 |
| Note: (*1) Based on the quarter prior to new unemployment through three quarters after new unemployment using the Benefit Year Begin date (BYB) of the first UI application that occurs in that time period. This excludes persons who did not have a job separation date, had a separation date prior to TANF exit, or had a separation date that occurred after the Benefit Year End date (BYE) of the UI claim. For the Florida 1997 and Michigan 2000 cohorts, mean UI application lags are also reported for persons who become newly unemployed for the first time in the fourth year after TANF exit. | |||||||
Figure 8.
Weeks from Job Separation to UI Benefit Year Begin Date
by Year After TANF Exit in which New Unemployment Occurs
UI claimants with BYBs in the first year after TANF exit tend to have longer lags between their job separation date and BYB. TANF leavers who become unemployed in the first year after TANF exit may delay UI application because they have a lower expectation of qualifying for UI benefits with low accumulated earnings. Similarly, inferior job matches may end sooner and be associated with contentious job separations resulting in lower expectations for UI benefit eligibility by the jobless.
Across the TANF leaver cohorts analyzed, the overall mean lag from job separation to BYB ranged from 4.9 to 7.2 weeks. But the median lags were either 1.0 or 2.0 weeks in five of the six cohorts examined. This means that at least half of newly unemployed TANF leavers filed their UI claims quickly. The mean lag being longer than the median results from relatively small shares of the TANF leaver cohorts waiting for longer periods before they file UI claims.
Mean time lags from job separation to BYB were much shorter for UI applicants who were not TANF leavers. Table 10 reports the time lags to be between 2.0 and 3.2 weeks among non-TANF leavers during the timeframes matched to analysis cohorts. The simple unadjusted differences from TANF leavers were between 1.9 and 4.6 weeks.
| 1997 Florida |
2000 Cohorts | 2001 Cohorts | 2003 Texas |
|||
|---|---|---|---|---|---|---|
| Florida | Michigan | Florida | Michigan | |||
| TANF | 5.7 | 6.6 | 5.2 | 7.2 | 4.9 | 5.1 |
| Non-TANF | 2.0 | 2.2 | 2.4 | 2.6 | 2.4 | 3.2 |
| Simple Difference | 3.73** | 4.45** | 2.77** | 4.59** | 2.54** | 1.90** |
| Adjusted Difference | 1.33** | 0.43** | 1.56** | -1.11** | 1.02** | 0.83** |
| Note: (*1) These estimates are computed
applying the constraint that new unemployment occurred within three years
of TANF exit. This explains why the mean time lag for the Florida 1997 cohort
TANF leavers differs slightly from that reported in Table 9
where UI claims following new unemployment in the fourth year after TANF
exit are included.
** Difference significantly different from zero at the 95 percent confidence level for a two-tail test. |
||||||
Estimates of adjusted differences in UI claim lags between TANF leavers and others were computed in regression models controlling for observable characteristics, UI program parameters, and labor market conditions. The regression-adjusted differences tended to be smaller than unadjusted differences, but were in the same direction with TANF leavers waiting longer to apply for UI. The smaller, regression-adjusted estimates suggest that much of the apparent difference in timing of UI application relative to job separation is explained by differences in observed characteristics between TANF leaver UI applicants and UI claimants without recent TANF involvement. Even after accounting for differences between the two groups, however, TANF leavers delayed UI application longer in 5 of the 6 TANF leaver cohorts compared with UI applicants not recently involved with TANF. The single exception was the Florida 2001 cohort wherein the regression-adjusted estimate suggests that TANF leavers established BYBs sooner than otherwise similar, non-TANF leavers. The result in Florida was likely a consequence of the onset and aftermath of the economic slowdown that started in 2001.
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Among TANF leavers who become newly unemployed and apply for UI, more than 90 percent were initially UI eligible based on monetary requirements in eight of the eleven cohorts analyzed (Table 11). Rates in the other three were 66.3 percent in the Ohio 2000 cohort, 61.4 percent in the Ohio 2001 cohort, and 84.6 percent in the Florida 1997 cohort. These rates are based on actual monetary determinations by UI agencies in the four states. The lower monetary eligibility rates in Ohio result from the requirement for 20 or more weeks of work earning at least 27.5 percent of the state average weekly wage in UI covered employment. Including Ohio, the mean rate of monetary eligibility across all cohorts is 90.9 percent.
In the time periods examined, UI monetary eligibility rates in half the TANF exit cohorts analyzed are at least as high as among UI claimants not previously involved with TANF. To contrast monetary eligibility between the two groups, Table 12 reports simple differences and regression-adjusted differences between UI applicants who were TANF leavers and those who were not.(3) For Ohio, UI claimants not previously involved with TANF have significantly higher monetary eligibility rates for UI than TANF leavers computed either as a simple difference or while controlling for observable characteristics in regression models. For the cohorts from the other states, there is no clear pattern of advantage for either TANF leavers or non-TANF leavers in terms of monetary eligibility.
| 1997 Cohorts | 2000 Cohorts | 2001 Cohorts | 2003 Texas |
All Cohorts |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Florida | Texas | Florida | Michigan | Ohio | Texas | Florida | Michigan | Ohio | Texas | |||
| TANF Leavers | 51,276 | 94,662 | 29,873 | 42,883 | 59,881 | 50,229 | 23,706 | 36,934 | 50,823 | 55,259 | 60,901 | 556,427 |
| Newly Unemployed | 37,621 | 63,937 | 23,755 | 33,460 | 44,835 | 37,072 | 16,599 | 28,756 | 36,515 | 40,469 | 43,462 | 406,481 |
| UI Applicants | 10,158 | 13,616 | 10,136 | 7,022 | 7,885 | 8,984 | 7,051 | 7,089 | 7,045 | 10,646 | 9,128 | 98,760 |
| Monetarily Eligible | 10,088 | 13,251 | 9,295 | 6,916 | 5,227 | 8,512 | 5,966 | 6,986 | 4,329 | 10,319 | 8,917 | 89,806 |
| Non-monetarily Eligible (*1) | 3,627 | 4,303 | 4,500 | 3,294 | 2,500 | 2,839 | 2,920 | 3,239 | 2,191 | 3,364 | 2,884 | 35,661 |
| UI Beneficiaries | 5,743 | 8,332 | 6,018 | 4,460 | 2,398 | 5,288 | 3,761 | 4,606 | 2,081 | 6,274 | 5,380 | 54,341 |
| Newly Unemployed Rate (%) | 73.4 | 67.5 | 79.6 | 78.0 | 74.9 | 73.8 | 70.0 | 77.9 | 71.8 | 73.2 | 71.4 | 73.1 |
| UI Application Rate (%) | 27.0 | 21.3 | 42.7 | 21.0 | 17.6 | 24.2 | 42.5 | 24.7 | 19.3 | 26.3 | 21.0 | 24.3 |
| Monetarily Eligible Rate (%) | 99.3 | 97.3 | 91.7 | 98.5 | 66.3 | 94.7 | 84.6 | 98.5 | 61.4 | 96.9 | 97.7 | 90.9 |
| Non-monetarily Eligible Rate (%) | 35.7 | 31.6 | 44.4 | 46.9 | 31.7 | 31.6 | 41.4 | 45.7 | 31.1 | 31.6 | 31.6 | 36.1 |
| UI Beneficiary Rate (%) | 56.5 | 61.2 | 59.4 | 63.5 | 30.4 | 58.9 | 53.3 | 65.0 | 29.5 | 58.9 | 58.9 | 55.0 |
| UI Entitlement (weeks) | 18.8 | 18.0 | 17.9 | 22.6 | 25.5 | 17.6 | 17.0 | 22.0 | 25.4 | 17.1 | 19.3 | 19.3 |
| UI Received (weeks) | 14.7 | 13.8 | 14.5 | 19.0 | 18.2 | 12.4 | 13.7 | 18.9 | 18.6 | 11.8 | 11.5 | 14.6 |
| Entitlement Received (%) | 78.9 | 83.6 | 80.8 | 79.3 | 71.6 | 83.4 | 80.8 | 80.7 | 73.0 | 82.8 | 78.4 | 80.4 |
| Exhaustion Rate (%) | 58.4 | 58.7 | 63.5 | 50.2 | 38.9 | 58.1 | 64.3 | 52.0 | 41.1 | 56.4 | 50.5 | 55.6 |
| Weekly Benefit Amount | $159 | $163 | $160 | $203 | $157 | $162 | $156 | $198 | $163 | $158 | $159 | $167 |
| Benefit Year UI Received | $2,441 | $2,359 | $2,421 | $3,919 | $2,877 | $2,096 | $2,240 | $3,780 | $3,027 | $1,928 | $1,922 | $2,545 |
| Note: UI received weeks are computed as
dollars of UI received in the benefit year divided by the entitled UI weekly
benefit amount. Entitlement received percentage is the mean share of entitled
UI benefit year dollars received by UI beneficiaries.
(*1) Due to limited data availability for Texas, the numbers of non-monetarily eligible UI claims for the 1997, 2000, and 2001 cohorts were imputed using the non-monetary eligibility rate for the Texas 2003 cohort. For all Ohio cohorts, the number and rate of non-monetary eligibility for UI is based on claims with benefit year begin (BYB) dates on or before December 31, 2002. More recent UI data for Ohio received in December 2007, with BYB dates beginning January 1, 2003, did not contain characteristic information from which to determine non-monetary eligibility. |
||||||||||||
| 1997 Cohorts | 2000 Cohorts | 2001 Cohorts | 2003 Texas | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Florida | Texas | Florida | Michigan | Ohio (*1) | Texas | Florida | Michigan | Ohio (*1) | Texas | ||
| Monetary Eligibility Rate | |||||||||||
| TANF Non-TANF Simple Difference Adjusted Difference |
99.3 94.1 5.2** 3.8** |
97.3 95.5 1.8** -0.4** |
91.7 92.8 -1.1** 3.3** |
98.5 98.5 0.0 0.0 |
66.3 83.5 -17.2** -8.0** |
94.7 96.3 -1.6** 0.6** |
84.6 90.9 -6.3** 1.1** |
98.5 98.5 0.0 0.0 |
61.4 82.2 -20.8** -14.4** |
96.9 96.7 0.2 0.2* |
97.7 96.9 -0.8** 0.0 |
| Quit or Discharge Rate | |||||||||||
| TANF Non-TANF Simple Difference Adjusted Difference |
64.3 40.9 23.4** 14.5** |
55.6 40.3 15.3** 7.9** |
53.1 15.9 37.2** 20.7** |
68.3 53.7 14.6** 6.8** |
58.6 39.5 19.1** 8.6** |
54.3 15.9 38.4** 20.6** |
68.9 52.8 16.1** 8.1** |
69.4 51.9 17.5** 9.4** |
|||
| Beneficiary Rate | |||||||||||
| TANF Non-TANF Simple Difference Adjusted Difference |
56.5 71.3 -14.8** -6.8** |
61.2 69.1 -7.9** -5.5** |
59.4 70.9 -11.5** -2.4** |
63.5 86.6 -23.1** -4.6** |
30.4 66.5 -36.1** -20.1** |
58.9 67.9 -9.0** -6.6** |
53.3 70.1 -16.8** -5.1** |
65.0 86.6 -21.6** -2.8** |
29.5 65.0 -35.5** -21.7** |
58.9 67.6 -8.7** -6.6** |
58.9 67.2 -8.3** -6.8** |
| Notes: Tabulated means for TANF leavers
are based on UI applications related to new unemployment occurring within
three years after TANF exit for employment. Means for UI claimants not recently
involved with TANF summarize all available data for each cohort. Similarly,
the estimated adjusted differences fully exploit all available data for each
cohort.
(*1) In the Ohio data there were multiple sources of information on job separation reasons. The estimates presented here are based on the UI applicant’s presence in the non-monetary determination file containing information about non-monetary eligibility issues to be resolved. Since we do not know the resolution of the issues, the mean quit and discharge rates are most likely overstated. ** Significantly different from zero at the 95 percent confidence level for a two-tail test. * Significantly different from zero at the 90 percent confidence level for a two-tail test. |
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While TANF leavers compare to non-TANF leavers favorably in terms of monetary eligibility for UI, TANF leavers have much lower rates of UI eligibility based on initial non-monetary factors. TANF leavers have much higher rates of unfavorable job separation circumstances concerning voluntary job quits and dismissals for cause. A summary of UI denial rates for quit or discharge from the prior employer is given in Table 12 which contrasts rates for TANF leavers with other UI claimants. Among TANF leaver UI applicants, rates of quit or discharge ranged from 53.1 percent to 69.4 percent across the cohorts. Disqualification rates in 30 Texas and Ohio were highest, but more than 50 percent failed non-monetary eligibility in each of the Florida and Michigan TANF leaver cohorts. Among newly unemployed TANF leavers who applied for UI the weighted mean rate of initial qualification for UI based on non-monetary factors across all cohorts was 36.1 percent (Table 11).
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Among TANF leavers who are UI applicants, the proportions receiving UI benefits in the analysis cohorts are presented in Table 11. Final rates of UI benefit receipt within three years of leaving TANF for employment range from 29.5 percent in the Ohio 2001 cohort to 65.0 percent in the Michigan 2001 cohort.
Compared to the first year after TANF exit, UI beneficiary rates tend to be higher in the second and third years after leaving TANF (Table 13). Final beneficiary rates can be high despite initially high rates of disqualification for non-monetary separation reasons since state UI laws deny UI benefit entitlement for only a fixed term, or until re-qualification occurs — usually through reemployment with additional earnings exceeding a required level.(4) Claimants disqualified for failing non-monetary eligibility requirements can also appeal the denial. However, the appeal rate and the success rate among appeals is likely to be low among TANF leavers.
Among all UI applicants, beneficiary rates for TANF leavers were uniformly lower than for those not recently involved with TANF. Table 12 shows the simple unadjusted differences in UI beneficiary rates to be between 8.3 percent and 36.1 percent lower for recent TANF leavers. Controlling for characteristics that influence UI eligibility, the beneficiary rates are between 2.4 percent and 21.7 percent lower for recent TANF leavers.(5)
Among TANF leavers who qualify for UI in the 1997 to 2003 cohorts, Table 11 shows the ranges of mean values for UI entitlement and benefit receipt. UI weekly benefit amounts (WBA) range from $156 to $203, entitled durations of UI benefits range from 17.0 to 25.5 weeks, and mean UI compensation received over the benefit year ranged from $1,891 to $3,919. The percentage of entitled benefits drawn ranged from 71.6 to 83.6, while the rates of exhausting UI benefit entitlements ranged from 38.9 to 64.3 percent.
| 1997 Cohorts | 2000 Cohorts | 2001 Cohorts | 2003 Texas |
All Cohorts |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Florida | Texas | Florida | Michigan | Ohio | Texas | Florida | Michigan | Ohio (*1) | Texas | |||
| Year 1 | 52.7 | 60.5 | 53.3 | 60.0 | 29.2 | 55.7 | 49.0 | 64.0 | 22.3 | 56.9 | 57.6 | 51.5 |
| Year 2 | 56.3 | 62.3 | 63.8 | 66.0 | 28.1 | 60.6 | 60.8 | 65.4 | 35.7 | 60.1 | 60.2 | 56.6 |
| Year 3 | 60.6 | 61.3 | 66.8 | 66.7 | 37.3 | 63.1 | 67.4 | 62.9 | 63.3 | 61.1 | ||
| Applicants (*2) | 10,158 | 13,616 | 10,136 | 7,022 | 7,885 | 8,984 | 7,051 | 7,089 | 7,045 | 10,646 | 9,128 | 98,760 |
| Average Rate | 56.5 | 61.2 | 59.4 | 63.5 | 30.4 | 58.9 | 53.3 | 65.0 | 29.5 | 58.9 | 58.9 | 55.0 |
| Note: (*1) To observe new unemployment following TANF exit, eight and ten quarters are checked for the Florida 2001and Ohio 2001 cohorts respectively. For all other cohorts, twelve quarters subsequent to TANF exit are checked for new unemployment. (*2) UI application is identified in a new spell of unemployment by checking for a UI benefit year begin (BYB) date in the period starting with the quarter prior to new unemployment through three quarters after new unemployment. |
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Rates of monetary and non-monetary eligibility together with UI beneficiary rates are presented graphically in Figure 9 for newly unemployed TANF leavers. Over time, rates are stable within states, but there are some noteworthy differences across states. The very high rates of monetary eligibility exceeding 90 percent in Florida, Michigan, and Texas are prominent. Beneficiary rates hover around 60 percent for these three states. Non-monetary eligibility rates for the Ohio cohorts are low at around 30 percent, but on par with Texas. Beneficiary rates in Ohio are slightly below the non-monetary eligibility rates. But in all other states the UI beneficiary rates far exceed the non-monetary eligibility rates.
Figure 9.
UI Eligibility and Beneficiary Rates Among Newly Unemployed TANF
Leavers
(percent)
[ Go to Contents ]
(1) Application rates among TANF leavers may be influenced by state rules requiring UI application to re-qualify for TANF cash assistance.
(2) The UI benefit year is the 52 week period starting with the benefit year begin (BYB) date. It is the time period during which available benefits resulting from a UI claim can be collected. The BYB date is the Sunday date in the week during which an application, or claim, for UI benefits is submitted to the state UI agency.
(3) Regression-adjusted differences are computed in models that include controls for: age, sex, race, multiple prior employers, number of quarters of TANF receipt prior to exit, change in county unemployment rate, indicator variables for occupational groups, calendar quarter time dummy variables, and regional indicator variables.
(4) The principle involved is that while an initial disqualification may be due to unacceptable behavior on the part of the claimant, continued joblessness is a consequence of conditions in the labor market. Each state has specific rules for UI monetary qualification after a definite denial for benefits. For the four states involved in this study the rules are: Florida, earnings of 17 times the client’s weekly benefit amount (WBA); Michigan, earning the lesser of seven times the client’s WBA or seven times 40 times Michigan’s minimum wage (7 x 40 x MI minimum wage); Ohio, having six weeks of work in covered employment with the amount of wages in each week at least 27.5 percent of the state’s average weekly wage; and for Texas, by earning six times the client’s WBA (USDOL 2001). Additionally, after a definite denial and adequate additional earnings and employment, the job separation must satisfy non-monetary eligibility requirements.
(5) Regression-adjusted differences are computed in models which include controls for: age, sex, race, multiple prior employers, number of quarters of TANF receipt prior to exit, change in county unemployment rate, indicator variables for occupational groups, calendar quarter time dummy variables, and regional indicator variables.
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