A quantitative analysis of unemployment benefit extensions
Extensions of unemployment insurance (UI) benefits have been implemented in response to the Great Recession. This paper measures the effect of these extensions on the unemployment rate using a calibrated structural model featuring job search and consumption-saving decisions, skill depreciation, and UI eligibility. The ongoing UI benefit extensions are found to have raised the unemployment rate by 1.4 percentage points, which is about 30% of the observed increase since 2007. Moreover, the contribution of the UI benefit extensions to the elevated unemployment rate increased during 2009–2011; while the number of vacancies recovered, the successive extensions kept search intensity down.
Year of publication: |
2012
|
---|---|
Authors: | Nakajima, Makoto |
Published in: |
Journal of Monetary Economics. - Elsevier, ISSN 0304-3932. - Vol. 59.2012, 7, p. 686-702
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Rising indebtedness and temptation: A welfare analysis
Nakajima, Makoto, (2012)
-
Nakajima, Makoto, (2020)
-
Essays on macroeconomic implications of uninsured idiosyncratic uncertainty
Nakajima, Makoto, (2004)
- More ...