Matt Costello
On the Determinants of Unemployment Insurance Coverage Rates: Minority Threat,
Ideology, and Political Partisanship
Introduction
Why do rates of unemployment insurance coverage differ between states over
time? Past studies have shown that a strong positive relationship between high rates of
minority presence and white hostility exists. Racial threat theory states that in areas
where the threat by a minority group is seen as high, the response by the dominant group
tends to be more antagonistic (Giles and Hertz 1994). High numbers of black residents
have been found to cause a threat response by whites (Quillian 1996). Increases in
minority presence threaten the dominant group, and they react by supporting policies
which will help maintain their ascendancy (Jacobs and Tope 2007). Giles and Evans
(1986) found that whites’ opinions about racial policy became more negative as the black
population increased in different U. S. counties.
It has been suggested that racial antagonism has weakened the ability of workers
to prevail in the political arena. If high concentrations of minorities are assembled in a
workforce, racial divisions may account for outcomes that do not favor labor (Jacobs
1978). Key proposes that racial politics deflect the pursuit of polices that benefit the less
affluent (Key 1949). Consequently, programs that are designed to be pro-labor are less
likely to be widespread if minorities are seen as the primary beneficiaries. One study
found that states with the highest percentage of African Americans were less likely to
have laws that favored workers over management (Jacobs 1978). Jacobs and Dixon
(2006) found that jurisdictions with the highest percentage of African Americans were
more likely to have provisions that hurt the interests of all workers. These studies
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