New highs in unemployment insurance claims
Unemployment insurance benefits have been on an upward trend over the past two decades, partially reversing an earlier decline. The trend is associated with shifts toward a higher share of job losers among the unemployed and longer durations of unemployment, which may cause benefits to lapse for some recipients as labor market weakness persists.
The ins and outs of unemployment insurance
Although the economy is rebounding, the unemployment rate remains high and private sector job gains remain weak. economists debate whether extending unemployment benefits keep unemployment artificially high by discouraging work.
Commentary on The recession of 2001 and unemployment insurance financing
Proceedings of a Conference Cosponsored by the Canadian Consulate General in New York, the Centre for the Study of Living Standards, the Federal Reserve Bank of New York, and the New York Association for Business Economics.
The great American job machine
Economic effects of the unemployment insurance benefit
The U.S. labor market has remained weak in recent years, even though the overall economy itself has started to grow again after the deep recession. In response to the weak labor market conditions, the U.S. government has greatly expanded the entitlement period of unemployment insurance (UI) benefits. In ?Economic Effects of the Unemployment Insurance Benefit,? Shigeru Fujita reviews some of the academic literature on the economic effects of UI benefits. On the one hand, UI can improve people?s well being because it helps them avoid a large drop in consumption in the face of job losses when ...
Unemployment insurance: payments, overpayments and unclaimed benefits
In the U.S. unemployment insurance program, most of the overpayments due to fraud arise from individuals collecting benefits while they are gainfully employed. In addition, the overpayments are dwarfed by payments unclaimed by some who are eligible for unemployment benefits.
Reservation Benefits: Assessing job acceptance impacts of increased UI payments
Job acceptance decisions weigh the value of an entire job spell relative to remaining unemployed. There exists a reservation level of beneﬁt payments in this dynamic decision problem at which an individual is indifferent between accepting and refusing an offer. This reservation beneﬁt is a simple statistic to test the job acceptance deterrence effects of current unemployment insurance (UI) payments, summarizing the decision problem conditional on the believed state of the labor market and the weeks of UI compensation remaining. Estimating the reservation beneﬁt for a wide range of US ...
Effects of extended unemployment insurance benefits: evidence from the monthly CPS
This paper attempts to quantify the effects of extended unemployment insurance benefits in recent years. Using the monthly Current Population Survey, I estimate unemployment-to-employment (UE) hazard function and unemployment-to-inactivity (UN) hazard function for male workers. The estimated hazard functions for the period of 2004-2007, during which no extended benefits were available, exhibit patterns consistent with the expiration of regular benefits at 26 weeks. These patterns largely disappear from the hazard functions for the period of 2009-2010, during which largescale extended benefits ...
Unemployment Insurance during a Pandemic
The CARES Act implemented in response to the COVID-19 crisis dramatically increased the generosity of unemployment insurance (UI) benefits, triggering concerns about substantial effects on unemployment. This paper combines a labor market search-matching model with the SIR-type infection dynamics to study the effects of the CARES Act UI on both unemployment and infection. More generous UI policies create work disincentives and lead to higher unemployment but also reduce infection and save lives. Economic shutdown policies further amplify these effects of UI policies. Quantitatively, the CARES ...
Changes in State Unemployment Insurance Rules during the COVID-19 Outbreak in the U.S.
The COVID-19 pandemic led to an unprecedented expansion in unemployment insurance (UI) eligibility across states. While more than forty states had modified UI rules by the end of March, not all states responded in the same way. In this article, I summarize the changes to state UI rules in response to the crisis and explore factors that have contributed to the variation in states’ responses.