The Federal Reserve Bank of Cleveland has released a report indicating that workers in the lower half of the income distribution who receive unemployment insurance tend to have significantly more savings than those who do not. The study reveals that recipients of unemployment insurance possess 3.7 times more net liquid wealth than nonrecipients in the bottom income quartile and about twice as much in the second income quartile.
The authors of the report, André Victor D. Luduvice and Anaya Truss-Williams, suggest that unemployment insurance may not be reaching some of the most vulnerable workers. “These differences highlight how some recipients are potentially much better insured for enduring an unemployment spell,” they write.
The Cleveland Fed is one of 12 regional Reserve Banks that, along with the Board of Governors in Washington DC, make up the Federal Reserve System. It plays a role in formulating national monetary policy, supervising banking organizations, and providing services to financial institutions and the US Treasury. Additionally, it supports community well-being across its district through research, outreach, and educational activities.
The Cleveland Fed’s jurisdiction includes Ohio, western Pennsylvania, eastern Kentucky, and northern West Virginia. The bank aims to inform policymakers and researchers about economic conditions such as inflation and employment risks while serving as part of the US central bank system.
For further information or inquiries regarding this report, Chuck Soder can be contacted at chuck.soder@clev.frb.org or by phone at 216.672.2798.
