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Unemployment Insurance Trust Fund Adequacy in the 1990s

Wayne Vroman
The Urban Institute

Funding problems for state unemployment insurance (UI) benefits emerged during the 1970s. By the 1980s, state UI programs developed an unprecedented reliance on U.S. Treasury loans for funding while program benefits were significantly reduced in an attempt to limit growing deficits.

Vroman introduces a model-based approach to the study of UI financing. He creates simulations for several large states in order to examine a series of funding issues, and analyzes the performance of those state's systems. In addition, he presents the regional aspects of UI funding. Vroman concludes with a brief presentation of UI solvency prospects and a description of a possible federal role in enhancing UI fund solvency.

160 pp. 1990
$17 paper ISBN 0-88099-102-X / ISBN-13 978-0-88099-102-5.

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