Unemployment Insurance and the Business Cycle: What Adjustments are Needed?
During the 2007-2011 economic downturn, the duration that one could collect unemployment insurance (UI) in the United States increased to an unprecedented 99 weeks, and the UI benefit amount increased by $25. This article explores the policy of increasing the generosity of UI during recessions using...
| Publicado en: | Southern Economic Journal Vol. 79; no. 3; pp. 680 - 703 |
|---|---|
| Autor principal: | |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Jan2013
|
| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=85157996&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 85157996 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Jan2013 vid: 79 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 85157996 10.4284/0038-4038-2010.321 ppf: 680 ppct: 23 formats: fmt: – @attributes: type: T – @attributes: type: P size: 15.8MB tig: atl: Unemployment Insurance and the Business Cycle: What Adjustments are Needed? aug: au: Schwartz, Jeremy affil: Loyola University Maryland, Department of Economics, 4501 North Charles Street Sellinger 315, Baltimore, MD 21210, USA su: United States Financial crises Unemployment Labor market Economic history Recessions Unemployment insurance sug: subj: Financial crises Unemployment Labor market Economic history Recessions United States Unemployment insurance ab: During the 2007-2011 economic downturn, the duration that one could collect unemployment insurance (UI) in the United States increased to an unprecedented 99 weeks, and the UI benefit amount increased by $25. This article explores the policy of increasing the generosity of UI during recessions using a model that accounts for the insurance and moral hazard implications of UI as well as the program's impact on job creation. When limited to adjusting the duration of benefits, a more generous UI system is optimal. However, due to UI's negative impact on job creation and the increased cost of providing benefits when unemployment is high, the optimal extension is just 1.3 months. When the government adjusts both the benefit amount and its duration, the optimal policy during downturns is a reduction in the replacement rate. This mitigates the decline in job creation and funds a UI extension of 4.3 months. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
|---|