Wage Insurance and Wage Supplements: Final Evaluation and Design Report

Abstract

This report outlines design parameters, evaluation methods, data sources, tasks, timelines and next steps for conducting a wage insurance and a wage supplement demonstration and accompanying evaluations. The report proposes key research questions related to program design and results, along with supplemental research questions gathered from the literature, feasibility analysis of the demonstrations, and discussions with an expert advisory committee and USDOL policy and program staff. Design parameters and options are outlined for each demonstration. These include program eligibility, targeting, supplement amount, duration and timing, and administrative infrastructure, and are largely based on the existing literature. The report proposes an implementation study and randomized control trial to capture the labor market impacts of the wage insurance and wage supplement demonstrations using employer records, state UI records, and survey data. Recommendations are made that a benefit/cost analysis be conducted as well. A discussion of the feasibility of the demonstrations and evaluation is included, along with precautions to ensure validity. Recommended large sample sizes and randomized control trial design, will support statistically significant results