As discussed in the Background section, the consumption and employment responses suggest that this was a highly successful policy in boosting spending with minimal job loss. Moreover, the federal government extended the potential benefit duration (PBD) and provided generous wage replacement over the course of the crisis. Research Proposal on Unemployment | UsefulResearchPapers.com State Administration is Ineffective The state administration of this program has created a patchwork of rules that have little benefits but many costs. There is also evidence on the benefits side of UI. Those businesses that use STC are overwhelmingly satisfied with the program (Balducci et al. For example, many temporary layoffs may become permanent, and that uncertainty may lead workers to move on and possibly end in a job that is a worse match. Besides lack of awareness, administrative hurdles are also a barrier. Project Proposal The collection of free sample research projects and research project At the same time, following UI receipt recipient spending rose by 10 percent as compared to the pre-job-loss consumption level, in spite of the loss in earnings. Finally, there are a set of unemployed individuals (like gig workers, self-employed individuals, or those entering the labor force for the first time) who would fall through the cracks of regular UI. A Plan to Reform the Unemployment Insurance - The WebThe GOP ideas include drug testing those claiming unemployment benefits, providing cash payments to businesses that hire the long-term unemployed meaning those who have collected benefits for more than 27 weeks and directing job seekers to Project proposal Moreover, unlike the state-level determination in the EB program, the emergency provisions are blunter, since they are uniform nationally, which prevents them from adequately addressing differential severity of downturns across states. At a broad level, I would argue that the 50 percent replacement rule is inadequate for many workers. The unemployment rate in America as of June 2030 is 3.7%, which is lower than the 7.5% experienced in 2025. Had I first considered the benefit levels and then the eligibility expansion, the vast majority of increased outlays would have been due to eligibility expansion. The share was virtually the same prior to the pandemic. Why use earnings and not hours-based threshold? Research Proposal On Unemployment Free Essay Example WebChapter 40B is the states regional planning statute, and the law seeks to ensure that all I provide the incremental cost for each of the five proposals in the same order as the proposals discussed above. In that case, the payroll taxes for employers/employees in those states would need to be adjusted to cover the additional expenses. Web3. The determination of the benefit also varies greatly across states. Professor of Economics, University of Massachusetts Amherst. The inadequacy of the regular benefit levels was laid bare during the Covid crisis, which led the federal government to provide a $600/week boost in March 2020, and a smaller $300/week boost in December of 2020. Capstone project video presentation | Education homework help (The range allows for some degree of experience rating, whereby taxes depend on the extent of use of benefits among workers laid off by a particular firm.) In addition, note that the estimates for 2020 do not account for payments from FPUC. In contrast, during the onset of the current crisis, PBD would have shot up to 98 weeks, but fallen as the labor market improved. The federal government in return would fully fund the reformed EB system for (say) Tiers 3 and above, as well for the recessionary boosts and for costs associated with STC. Overall, the average outlays would increase by $170 billion/year relative to the outlays in those years, leading to total average outlays of $272billion under my current proposal during the 200812 severe downturn period. Next, I discuss the challenges facing the current program. This echoes the proposal made by Abraham and Houseman (2014). Under STC, instead of laying off workers, employers reduce their hours by as much as 40 percent to 60 percent, depending on the state. The project team needs to modify the project's Another benefit is that by using triggers the phasing out of extended PBD would be smoother. At the same time, under my proposal the PBD would have increased more quickly during the Great Recession, making it a better automatic stabilizer. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); All content 2023 Brookings. Free Research Projects: Research Proposal on Unemployment But if we approach social insurance from a more holistic perspective, we need to better address distributional concerns. Inflation is defined as a generalised increase in the level of price sustained over a long period in an economy (Lipsey and Chrystal, 1995). Chinas youth unemployment problem By Nancy Qian / CHICAGO This month, China released official statistics showing that its unemployment rate for young people (16 to 24 years old) reached a record high of 20.4 percent last month. Proposal 5: Strengthen STC Incorporate STC into UI at the federal level, and substantially increase administrative capacity and funding to process applications in a timely fashion. I estimate that the payroll taxes needed to cover the outlays under my proposal would amount around 2 percent of total wages. During recessions, the PBD is typically longer. A particularly successful example is Germany, where use of STC has greatly mitigated the rise in unemployment during downturns. Essentially, the project scope has grown beyond initial expectations. It is important to emphasize that much of my other proposals can be implemented under the current system as long as the federal government is able to provide financial incentives and support for the states to adopt these reforms. WebIn this project proposal, I will talk about unemployment as a social work issue in However, while most of Chinas pandemic-related obstacles to employment have been lifted, the fundamental conditions for reducing Chinas youth unemployment are not improving. The hours-based thresholds can be 120 hours in one quarter and 60 hours in a second quarter. In particular, I recommend seven tiers of PBD for the proposed federal UI program, where the PBD will depend on the maximum of state or national TUR: To be concrete, if someone is in a state with a 10 percent unemployment rate while the national unemployment rate is 7 percent or higher, they would be in Tier 7 (with a PBD of 98 weeks). Following the Great Recession, there was widespread agreement among experts that the UI system in the United States required substantial changes. From a purely insurance perspective, the $600/week supplement not only smoothed consumption but actually boosted it, with a small to no efficiency loss in terms of employment. Read These triggers are as follows: Under current law, the federal government typically covers half of the cost of the EB program in Tiers 1 and 2. The Youth UnEmployment project is the AEGEE-Europe project which A well-analyzed research proposal should be logically-structured, In the case of UI, allowing state administration and a hybrid federal-state partnership for financing has not produced any clear gains. Averaged over the 201519 period, I estimate that outlays would have been around $42 billion higher due to the higher benefit levels in my proposal. The beneficial stimulus effects and the reduced cost of moral hazard (due to search externalities) allows a moregenerous benefit level during downturns. Moreover, by reducing the number of active jobseekers, STC can mitigate the reduction in labor market tightness during downturns, thereby helping unemployed workers as well. In this way, workers and employers can stay attached, and the reduced earnings are shared across workers more broadly. Because during downturns jobs are rationed, and there are many more workers searching for jobs than there are vacancies. A successful reform proposal would produce a policy that would allow these extensions in PBD to occur in a more automatic fashion based on economic realities. The proposed benefit levels would be more generous than those in any state. I recommend that the payroll tax be levied on both employers and employees, similar to Social Security. For example, in the aftermath of the shallower 2001 recession, average PBD would have risen to a little under 50 weeks for a brief period, and stayed mostly under 40 weeks during the recovery period. The goal of this increase in benefits was to allow most workers to receive at least close to their usual earnings during the period when individuals were laid off due to the onset of the pandemic and (initially) due to the lockdowns that mandated business closures in most states. Much has changed in the labor market since then, and we have learned much more about the possibilities and limitations of our current UI system. (2017) conducted demonstration projects in two states and found that disseminating information about STC significantly raised use of that option. At the same time, transitioning to a fully federal system has costs and requires overhauling the administrative structure of UI. The maximum length of time an individual can collect UI is known as the potential benefit duration, or PBD, while the share of income that is replaced by UI benefits is known as the replacement rate. Finally, the federal government should implement a Jobseekers Allowance (JA) program for those who are unemployed and searching for work, but who do not qualify for regular UI, closely following the proposal in West et al., 2016. Unemployment Project By insufficiently smoothing the taxation over the business cycle, states have also hampered effective recoveries. In addition, the use of general funds from the federal budget to pay for cyclical UI helps provide greater stimulus during economic recoveries. First, employers may not cut worker hours more than 40 to 60 percent (depending on the state), which may be too restrictive in some cases. For comparison, the US youth unemployment rate hit 14.85 percent at its pandemic peak in 2020, before declining to 9.57 percent in 2021 and to 6.5 percent today. Farrell et al. In appendix A I show that the average replacement rates by earnings level from this simpler plan are broadly similar to what I suggest in the proposal. 2020). As figure 1 shows, during the extended Great Recession period (200812), the proposed policy would have raised the (average) PBD to levels that are broadly similar to what was discretionarily achieved via Emergency Unemployment Compensation over that period. WebThe project aims at eradicating poverty by available water to the local resident at the nearest place possible, The project will help to build a a Gravity water intake in Kipkelion, Itare, Bomet and Roret areas where it will be cheap for the company to run unlike the use of Electricity which is cost for the company. The lack of cyclical changes in tax rate schedule can help in the economic recoveries. Technology and globalization mean that many lost jobs are not returning. [emailprotected]. Currently, 27 US states have STC programs. Currently, UI is available primarily to those workers who were involuntarily separated. However, there would be additional limits on collecting the JA, with a 52-week total limit in any rolling five-year period. Between the second week of March and the second week of May 2020, the number of individuals on UI jumped from 1.8 million to 24.9 million, as many employers (especially in hospitality, travel, and other service sectors) put their workers on temporary layoffs and most state governments enacted stay-at-home orders. This was true even though the average median replacement rate under the $600 boost was much greater than 100 percent (and stood at 148 percent averaged across states.) In general, distributional concerns should push us toward providing more insurance for low-income earners. Unemployment Because administration of the program is left to the states, there is tremendous variation in eligibility and replacement rates across states, and some variation in the PBD as well. This would require major funding to overhaul antiquated software, hire additional personnel, and adopt national standards. Free example research paper proposal on Unemployment topics. The length of the research proposal template is not long. There are many institutional arrangements that can help facilitate the transition process. Finally, besides the microeconomic objective of consumption smoothing, UI also has a macroeconomic role in stimulating consumption and serving as an automatic stabilizer (Chodorow-Reich and Coglianese 2019). Summary A project proposal is a written document outlining everything stakeholders should know about a project, including the timeline, budget, objectives, and goals. Overall, the funding balance would strongly move toward the federal government, giving a substantial incentive for states to adopt the necessary standards. Reduce the earnings eligibility threshold, setting the minimum earnings requirement at $1,000 in one quarter and $500 in a second quarter during the base period, allowing for both standard and alternative base periods. To calculate the average benefit levels under my proposal during that period, I use the 2011 CPS. Those concerns suggest greater replacement rates for workers at the lower end of the wage distribution. WebLooking for Research Proposals on Unemployment and ideas? In this proposal, I have suggested using realistic earnings based thresholds. Overall, the evidence from the pandemic shows a surprisingly small impact of benefit generosity on employmentboth at micro and macro levels. This $600/week boost expired at the end of July and was not renewed via legislation at that time due to lack of political consensus on the terms of renewal. Purpose: The paper was prepared at the request of Germany as an input to discussions on Rural Youth Employment in the G20 Development Working Group. Provide financial incentives to employers to use STC by providing a refundable tax credit to reimburse employers for the added costs of providing full health benefits for workers during the period of reduced work hours. Finally, under legislation passed in December 2020, the FPUC benefit boost was renewed, albeit at $300/week instead of $600/week. The JA PBD would also respond to the same state and national triggers that would determine the regular UI PBD, as discussed in Proposal 3 below. This included the Emergency Unemployment Compensation program in the Great Recession that extended PBD to as much as 99 weeks. In total, there is an additional 14.5 million unemployed people that were temporarily laid off, many of them unsure of returning to their workplaces after the pandemic. Seventeen states would have had greater PBDs and 34 states would have had lower PBDs under my plan. The proposed recessionary boost is proportionate to the size of the downturn: for example, it would have added a smaller boost of around $35 billion during the 2001 recession. Ganong et al. What We Have Learned About UI During the COVID Crisis The UI system played a very important role during the Covid crisis in delivering relief to those who were not able to work during the lockdown period, and to both short- and longer-term unemployed workers subsequently. Therefore, from a sociological perspective, unemployment is a social issue that negatively impacts the victims and The Covid crisis has led to an unprecedented reliance on the UI system to deliver relief, income support, and fiscal stimulus in modern times. Figure 3 shows the same distribution, but now with a recessionary boost of $100/week. Proposal 3: Tie PBD to State and National Triggers The key recommendation is to reform the current EB program to accomplish three objectives: (1) remove the look-back period, (2) add more tiers to allow for adequate increases in the PBD during downturns, and (3) include both national and state triggers to allow for a robust response at the national level while allowing for heterogeneity across local areas. Write Successful Proposals for Youth-based Projects Finally, during the current crisis, the automatic recessionary boost would have provided around $40 billion in added spending in 2020. The unemployment insurance (UI) system has played an important role in delivering relief during the current pandemic. Overall, under my proposal, during expansionary periods, UI outlays would increase by around $89 billion, reaching $119 billion a year instead of the current $30 billion annual outlay. Part of the costs of the programreflecting regular benefits paid during normal timeswould be paid using a federal payroll tax, while the balance would be paid using general federal revenue. They assess whether those who were not employed by their employer (or by another Homebase employer) return to employment following the FPUC expiration, and find no relationship between the change in replacement rates (based on pre-pandemic earnings) and change in reemployment. Policy Proposals A Plan to Reform the Unemployment Insurance System in the United States By: Arindrajit Dube April 12, 2021 Employment & Wages, Social Insurance Full Paper Abstract The unemployment insurance (UI) system has played an important What are some takeaways from the consumption response to UI during the Covid crisis, and what implications do those takeaways have for policy design? In this policy paper I have tried to synthesize some key aspects of the existing proposals, while updating and adding some elements in light of the experiences with UI during the Covid crisis. For example, Houseman et al. Organise a focus group with young people in your community. WebSome key aspects containing the following: step 1, the first task to be completed is to unify the unemployment programs of all fifty states. Proposal 1: Make UI A Federally Financed and Administered Program Under my proposal, UI will be made a fully federally administered program, like Social Security. The added outlays would mainly be from the refundable tax credits to compensate for health benefits. This can reduce the rate at which workers exit out of unemployment, thereby prolonging spells of joblessness and costing taxpayers additional resources. Following this, I lay out my proposed reforms to the UI system. It is easier to draw on savings or to borrow to keep up consumption when facing a 5-week-long spell as opposed to a 20-week-long one. Costs and Benefits of Providing UI With the current structure of UI benefits in mind, it is worth thinking about the costs and benefits when designing an ideal UI program. One way to avoid this eventuality is through STC. Too generous a benefit may be costly because it could lead workers to reduce their effort to find a job since they are receiving a benefit without having to work. As discussed in the Background section, there are three distinct rationales for raising benefits in recessions.