Mar 11, 2014
Extend Their Benefits and They Still Take Jobs
Posted on May 9, 2013
New research from the Federal Reserve Bank of San Francisco shows that long-term jobless people whose unemployment benefits were extended at the start of the recession did not become unwilling to work.
“Overall, our estimates suggest that extending unemployment insurance benefits in weak labor markets has virtually no effect on the rate of job finding,” said the study conducted by Princeton University economics professor Henry Farber and San Francisco Fed economist Rob Valletta. Furthermore, the authors say the benefits probably helped the economy, as those who received money promptly spent it on necessary goods and services.
In a healthy economy, people who lose their jobs through no fault of their own are usually able to get six months of state-funded unemployment insurance. In recessions, Congress regularly adds weeks of federally funded benefits. In 2010 and 2011, jobless people in certain states were eligible for an unprecedented 99 weeks of benefits from state and federal governments.
—Posted by Alexander Reed Kelly.
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