UI as a Safety Net for Former TANF Recipients. Eligibility for UI

03/01/2008

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.

 

Table 11.
UI Entitlement and Benefit Receipt Among TANF Leavers
  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.

 

Table 12.
Monetary Eligibility, Quit or Discharge, and UI Beneficiary Rates (percent) Among Newly Unemployed TANF Leaver UI Applicants and Other UI Applicants Not Recently Involved with TANF
  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.

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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