A new look at experience rating.

Harvey M. Wagner

Expert InsightsPublished 1958

An analysis of the recent developments in experience rating (provided under the Federal Unemployment Act of 1939) to evaluate suggested policy changes in the system's operation. The various arguments presented are that a potential lowering of taxes gives firms an incentive to stabilize their work force, "unstable" employers should bear more of the cost for unemployment compensation than "stable" employers, current financing is inadequate to meet possible rises in the unemployment rate, and undesirable interstate and interindustry inequities prevail. It is concluded that a diminution of experience-rating differentials, combined with a more direct cyclical scheme of varying over-all rates, will provide financial benefits outweighing those presently in effect.

Document Details

  • Copyright: RAND Corporation
  • Availability: Web Only
  • Year: 1958
  • Pages: 20
  • Document Number: P-1465

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Wagner, Harvey M., A new look at experience rating. Santa Monica, CA: RAND Corporation, 1958. https://www.rand.org/pubs/papers/P1465.html.
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