How Well Insured are Job Losers? Efficacy of the Public Safety Net

An extensive literature in economics documents large and persistent declines in earnings following involuntary job loss. Though Unemployment Insurance provides the largest buffer against lost income, due to the structure of the program, the neediest are less-well insured (in terms of dollars transferred and percentage of lost earnings replaced) compared to middle and higher income job losers. This has important implications in light of the historic number of job losses during the COVID-19 pandemic.