Unemployment Compensation in Varying Phases of Joblessness

Abstract

This paper discusses the role of unemployment insurance in society's overall effort to provide people with income security. The unique goal of unemployment insurance is indicated as distinct from that of welfare programs. The course of unemployment is traced with respect to beneficiaries? prospects for reemployment and their concomitant standard of living. The consequent transformation of the UI goal of helping to maintain the beneficiaries' standard of living is discussed. A gradual merging of UI type and welfare type income maintenance goals take place, with implications for the financing scheme of unemployment benefits for the long-term unemployed. The author advocates conceptual distinction of unemployment insurance per se, applicable to the initial phase of joblessness, from unemployment compensation, applicable to long-term unemployment.