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The labor market effects of US reemployment policy: Lessons from an analysis of four programs during the Great Recession [Florida REA vs. Control] (Michaelides & Mueser, 2020)

Review Guidelines

Absence of conflict of interest. 

Citation

Michaelides, M., & Mueser, P. (2020). The labor market effects of US reemployment policy: Lessons from an analysis of four programs during the great recession. Journal of Labor Economics, 38(4), 1099-1140. https://doi.org/10.1086/706485 [Florida REA vs. Control]

Highlights

  • The study's objective was to examine the impact of reemployment programs on public benefits receipt, employment, and earnings outcomes. This profile focuses on the comparison between the Florida Reemployment and Eligibility Assessment (REA) program and the control group. The authors investigated similar research questions for other contrasts, the profiles of which can be found here:
  • The study was a randomized controlled trial at the Florida site. Using unemployment insurance (UI) claims data and wage records collected by the state of Florida, the authors conducted statistical models to compare the outcomes between treatment and control group members.  
  • The study found significant negative relationships between participation in the Florida REA program and collecting/exhausting regular and emergency UI benefits. Additionally, the study found significant positive relationships between the REA program and employment.  
  • This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to the Florida Reemployment and Eligibility Assessment (REA) program, and not to other factors. 

Intervention Examined

The Reemployment and Eligibility Assessment (REA) Initiative in Florida

Features of the Intervention

The Florida REA program was the state implementation of the larger Reemployment and Eligibility Assessment framework, supported by the US government. The REA program was created to encourage reemployment and reduce burden imposed on unemployment insurance (UI) programs through the establishment of in-person eligibility reviews to ensure that beneficiaries were eligible for benefits. REA program participants in Florida were required to visit their public employment offices to complete in-person eligibility reviews. 

Features of the Study

This study was part of a three-site investigation of reemployment programs during the Great Recession. This profile focuses on the Florida REA vs. control group analysis.  

The study used a randomized controlled trial to examine the impact of the Florida REA program. To be eligible, participants had to be receiving UI benefits in the state of Florida and be REA service eligible due to increased risk of exhausting their regular UI benefits. Of the 58,416 eligible UI recipients, 23,471 were assigned to REA, 18,510 were assigned to PREP, and 16,435 were assigned to the control group. Participants who were randomly assigned to the REA treatment group were required to visit their public employment offices to complete an in-person eligibility review. Participants were required to complete the review and received notification letters of the requirement when they collected their second weekly UI payment. Participants randomly assigned to the control group were services eligible; however, they were not required to fulfill the program requirements to continue receiving UI benefits and did not receive notification letters. The majority of the study sample were male and White, had a high school diploma or above, and were white collar workers. Data sources included UI claims data and wage records collected by the state of Florida. The authors used statistical models to compare the outcomes of treatment and control group members.  

Findings

Public benefits receipt  

  • The study found that participation in the Florida REA program had a significant negative effect on exhausting regular UI benefits, the number of weeks regular UI benefits were received, and the dollar amount of regular UI received.  
  • The study found that participation in the Florida REA program also had a significant negative effect on collecting Emergency Unemployment Compensation (EUC), exhausting EUC benefits, the number of weeks EUC benefits were received, and the dollar amount of EUC received.  

Employment  

  • The study found that participation in the Florida REA program had a significant positive effect on employment rates in the four quarters following program entry.  

Earnings and wages 

  • The study did not find any significant effects of the Florida REA program on earnings in the four quarters following program entry. 

Causal Evidence Rating

The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to the Florida Reemployment and Eligibility Assessment (REA) program, and not to other factors. 

Reviewed by CLEAR

May 2024

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