putting upward pressure on wages. Despite the large costs of these programs the literature has yet to fully explore whether … benefit amount. The lower benefit amount allows wages to fall in recessions, reducing labor costs and encouraging job creation … in expansions. This again allows wages to adjust downward. After two months of unemployment, UI benefits are more …

, nominal wages and real wages with the explanatory variables of lagged prices, real GNP growth over trend, nominal GNP growth …