Did the $600 Unemployment Supplement Discourage Work?

RePEc Short ID: ppe260
ORCID iD: 0000-0002-2216-110X

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.