Unemployment Insurance Evidence

The Benefits of Unemployment Insurance During A Recession

07/01/2010

Dr. Wayne Vroman. The Urban Institute. July 2010.

“The Role of Unemployment Insurance As an Automatic Stabilizer During a Recession” explains the macroeconomic implications of unemployment insurance (UI). By ensuring the purchasing power of the unemployed, the government is able to hamper the downward spiral of reduced employment, leading to reduced consumption, leading to reduced economic activity.

San Francisco Fed Finds Unemployment Insurance Doesn't Significantly Contribute to Unemployment Levels

04/19/2010

Rob Valletta and Katherine Kuang. Federal Reserve Bank of San Francisco. April 19, 2010.

“Extended Unemployment and UI Benefits” dismantles one of the traditional arguments against lengthy periods of unemployment coverage.

Moody’s Analytics Advocates Unemployment Insurance as Stimulus

04/14/2010

Mark Zandi. Testimony before the Senate Finance Committee. April 14, 2010.

"Using Unemployment Insurance to Help Americans Get Back To Work”: “No form of fiscal stimulus has proved more effective during the past two years than emergency UI benefits, proving a bang for the buck of 1.61—that is, for every $1 in UI benefits, GDP one year later is increased by an estimated $1.61.” Only food stamps and federal financing of Work Share programs have a bigger bang for the buck.

Congressional Budget Office Says Unemployment Benefits Have Strongest Stimulative Effect

01/01/2010

Congressional Budget Office. January 2010.

“Policies for Increasing Economic Growth and Employment in 2010 and 2011” takes a look at the unemployment rate following the Great Recession and makes suggestions regarding which policies will alleviate the problem. When considering policy options with the quickest turn around, CBO suggests extended unemployment benefits as one of the strongest options.

When Unemployed Leave The System, They Don't Necessarily Join The Labor Force

02/01/2007

David Card, Raj Chetty, and Andrea Weber. Harvard University. February 2007.

“The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?” analyzes one of the long standing critiques of unemployment insurance.

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