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Tuesday, July 15, 2014

Does Extending Unemployment Benefits Raise Joblessness?

Me, at MoneyWatch:

Can unemployment benefits raise joblessness?: Did the extension of unemployment compensation during the Great Recession cause joblessness to go up? ...

The latest research on this topic from Katharine Bradbury of the Federal Reserve Bank of Boston ... finds that unemployment does go up when unemployment benefits are extended, but the question is why. Does it discourage workers from taking jobs, or discourage them from leaving the labor force?

Bradbury pointed out that the earlier research shows it's mostly the latter, that extending unemployment benefits causes workers to stay in the labor force longer before dropping out. No notable impact was found on their willingness to take available jobs. ...

    Posted by on Tuesday, July 15, 2014 at 07:50 AM in Economics, Social Insurance, Unemployment | Permalink  Comments (13)

          


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