How the provision of unemployment benefits affects employment and unemployment is a debated issue. In this paper, we … job market with search effort and labor force participation decisions while varying the maximum length of unemployment … effort when unemployment benefits are extended. However, individuals are more likely to participate in the labor force and to …

Equilibrium labor market theory suggests that unemployment benefit extensions affect unemployment by impacting both job … vacancy creation and employment and a rise in unemployment …

We study how the level of unemployment insurance (UI) benefits that trades off the consumption smoothing benefit with … moral hazard cost is procyclical, greater when the unemployment rate is relatively low. By contrast, our evidence suggests … standard deviation increase in the unemployment rate leads to a roughly 14 to 27 percentage point increase in the welfare …