responses, unemployment insurance extensions contributed 0.5 percentage point to the increase in the aggregate unemployment rate …The high U.S. unemployment rate after the Great Recession is usually considered to be a result of changes in factors … in the unemployment rate, these factors should have influenced workers' and firms' decisions. Therefore, it is important …

unemployment benefits in response to an unemployment shock in a simple, reduced-form model of the labor market. It is found that …. Adjustment costs of changing benefits can introduce hysteresis in benefit setting and unemployment. Both (very) bad and good … temporary shocks (including monetary) can permanently reduce unemployment benefits and the unemployment rate. A desirable …