Fig. 3.
Statutory replacement rates.
Notes: this figure shows the fraction of pre-tax earnings that are replaced by unemployment benefits (statutory replacement rates). In panel (a) the bins correspond to deciles of the pre-job loss weekly earnings distribution for the unemployed and we report replacement rates for the median unemployed worker in each bin. Panel (b) shows the median fraction of pre-tax earnings that are replaced by unemployment benefits (statutory replacement rates) for workers in eleven of the most common occupations. The horizontal line in both panels shows a replacement rate of 100%, which is where benefits are equal to earnings. The estimates are statistically precise; Table 2 provides standard errors on the distribution of replacement rates and the standard error for the occupation-level estimates is always less than 4.3 percentage points.