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Why extended UI benefits are still necessary

Equilibrium labor market theory suggests that unemployment benefit extensions affect unemployment by impacting both job search decisions by the unemployed and job creation decisions by employers. The existing empirical literature focused on the former effect only.

We develop a new methodology necessary to incorporate the measurement of the latter effect. Implementing this methodology in the data, we find that benefit extensions raise equilibrium wages and lead to a sharp contraction in vacancy creation, employment, and a rise in unemployment. Evidence from Recent Cycles in the U.

Unemployment insurance might increase unemployment, but only slightly

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Jobs created by unemployment insurance benefits

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What responsibilities do I have when using this report? Dates and time periods associated with this report. Geographical information about where this report originated or about its content. You Are Here: home unt libraries government documents department this report. Description This report describes the history of temporary federal extensions to unemployment benefits from to the present.


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Extending Unemployment Insurance Benefits - Center for American Progress

Authors Whittaker, Julie M. Analyst in Income Security. Publisher Library of Congress. Congressional Research Service. Place of Publication: Washington D. About Browse this Partner.

Extending Unemployment Insurance Benefits 101

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