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Date: November 22, 2024 Fri

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Results for unemployment insurance

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Author: Fuller, David L.

Title: Unemployment Insurance Fraud and Optimal Monitoring

Summary: The most prevalent incentive problem in the U.S. unemployment insurance system is that individuals collect unemployment benefits while being gainfully employed. We show how the unemployment insurance authority can efficiently use a combination of tax/subsidy and monitoring to prevent such fraud. The optimal policy monitors the unemployed at fixed intervals. Employment tax is nonmonotonic: it increases between verifications but decreases after a verification. Unemployment benefits are relatively flat between verifications but decrease sharply after a verification.

Details: St. Louis, MO: Federal Research Bank of St. Louis, 2012. 41p.

Source: Internet Resource:Working Paper 2012-024A: Accessed August 6, 2012 at: http://research.stlouisfed.org/wp/2012/2012-024.pdf

Year: 2012

Country: United States

URL: http://research.stlouisfed.org/wp/2012/2012-024.pdf

Shelf Number: 125868

Keywords:
Insurance Fraud
Unemployment and Crime
Unemployment Insurance