Did the $600 Unemployment Supplement Discourage Work?

Petrosky-Nadeau, Nicolas; Valletta, Robert G.

Journal Article

Did the $600 Unemployment Supplement Discourage Work?

Abstract: People receiving unemployment insurance benefits during the COVID-19 recession were entitled to $600 of additional payments per week through July. This large increase in benefit payments raised a concern that recipients would delay returning to work. However, analysis suggests that the available aid would not outweigh the value of a longer-term stable income in workers’ decisions to accept job offers. Evidence from recent labor market outcomes confirms that the supplemental payments had little or no adverse effect on job search.

Keywords: Unemployment; Unemployment insurance;