Many government policies, though ostensibly neutral, have effects that vary by gender. It is important to be aware of these differences—in either di

Fix unemployment insurance to help young men into work - American Institute for Boys and Men

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2024-11-10 03:00:03

Many government policies, though ostensibly neutral, have effects that vary by gender. It is important to be aware of these differences—in either direction—in policy design and evaluation.

The financing of unemployment insurance (UI) programs is one example, as I show in recently published research for the Niskanen Center. UI benefits are paid for by taxes applied to individual companies, with the tax rate based on that company’s history of workers drawing on the UI system. For the same reason your car insurer raises your rates after an accident—to encourage you to be more careful and hopefully reduce the likelihood of future claims—states raise the tax rate employers pay for unemployment insurance after they lay off a worker. This “experience rating” system is intended to encourage companies to avoid layoffs, but it has had several perverse consequences.

Most importantly, employers also change how they hire workers. Specifically, they will avoid hiring workers that they anticipate will be a future layoff risk. My new research shows that these workers are predominantly men, either because men tend to work in high-turnover industries or because men are more likely to be fired for other reasons.

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