Unemployment Benefits: Not So Beneficial After All

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Unemployment Benefits: Not So Beneficial After All


Chicago Fed estimates that unemployment insurance increased unemployment during the recession

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Chicago Fed estimates that unemployment insurance increased unemployment during the recession

 


Will politicians ever stop lying to the public?

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Will politicians ever stop lying to the public?

 


The Effect of Unemployment Insurance on Unemployment, David Henderson | EconLog | Library of Economics and Liberty

http://econlog.econlib.org/archives/2011/01/the_effect_of_u_1.html

 


My Agnosticism about UI

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My Agnosticism about UI

 


Work Incentives and the Food Stamp Program — by Hilary Williamson Hoynes, Diane Whitmore Schanzenbach

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Work Incentives and the Food Stamp Program — by Hilary Williamson Hoynes, Diane Whitmore Schanzenbach

Labor supply theory makes strong predictions about how the introduction of a social welfare program impacts work effort. Although there is a large literature on the work incentive effects of AFDC and the EITC, relatively little is known about the work incentive effects of the Food Stamp Program and none of the existing literature is based on quasi-experimental methods. We use the cross-county introduction of the program in the 1960s and 1970s to estimate the impact of the program on the extensive and intensive margins of labor supply, earnings, and family cash income. Consistent with theory, we find modest reductions in employment and hours worked when food stamps are introduced. The results are larger for single-parent families.

Daniel J. SmithSent Via Mobile Phone
http://www.danieljosephsmith.com


Unemployment Benefits

http://econlog.econlib.org/archives/2010/03/unemployment_be.html


Incentives Matter: Unemployment Benefits and Job Search Intensity

http://divisionoflabour.com/archives/006873.php

“This paper provides new evidence on job search intensity of the unemployed in the U.S., modeling job search intensity as time allocated to job search activities. The major findings are: 1) the average U.S. unemployed worker devotes about 41 min to job search on weekdays, which is substantially more than their European counterparts; 2) workers who expect to be recalled by their previous employer search substantially less than the average unemployed worker; 3) across the 50 states and D.C., job search is inversely related to the generosity of unemployment benefits, with an elasticity between −1.6 and −2.2; 4) job search intensity for those eligible for Unemployment Insurance (UI) increases prior to benefit exhaustion; and 5) time devoted to job search is fairly constant regardless of unemployment duration for those who are ineligible for UI.”


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