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Unemployment Insurance: Payments, Overpayments and Unclaimed Benefits

January 15, 2013 Comments off

Unemployment Insurance: Payments, Overpayments and Unclaimed Benefits

Source: Federal Reserve Bank of St. Louis

Overpayments in the U.S. unemployment insurance system have received increasing attention of late. For example, CNN.com cited a recent study by the Department of Labor in reporting that 11 percent of all unemployment benefits were overpaid.1 Vice President Joe Biden, charged with leading the Campaign to Cut Waste, said: "Unemployment checks are going to people in prison. Unemployment checks are going to graveyards."

In this article, we examine the U.S. unemployment insurance system’s expenditures over a longer horizon. We begin by illustrating the benefits paid from 1989 to 2011. Next, we take a look at the overpayments. Finally, we discuss a fact that is less well-known: Not everyone who is eligible for unemployment benefits actually collects them. Over the longer horizon, these unclaimed benefits are much larger than the overpayments that have received recent attention.

Categories: business and economics, Federal Reserve Bank of St. Louis, government and politics, labor, management

Is a College Cap and Gown a Financial Ball and Chain?

September 1, 2011 Comments off

Is a College Cap and Gown a Financial Ball and Chain? (PDF)
Source: Federal Reserve Bank of St. Louis

The cost of a four-year college education has risen roughly 150 percent since 1980. 1 For this and other reasons, more and more students must take out student loans to finance their education. Upon graduation, many find they have accrued a sizable debt. Given the significant expense, some question the value of earning a college degree. However, along with the rising cost, the lifetime earnings difference between college and high school graduates has widened. The increased earnings potential of a bachelor’s degree allows a college graduate to recover the cost of college over time and eventually surpass the earnings of those with only a high school diploma.

Includes bibliography of related articles and data sources.

Categories: business and economics, education, Federal Reserve Bank of St. Louis, postsecondary, salaries and wages
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