During the recent recession, workers were eligible for UI benefits only if they were laid off in most states. At the start of the recent recession only 17 states offered short-time compensation (STC) - pro-rated unemployment benefits for workers whose hours are temporarily reduced for economic...

It is well known that the long-term unemployed fare worse in the labor market than the short-term unemployed, but less clear why this is so. One potential explanation is that the long-term unemployed are "bad apples" who had poorer prospects from the outset of their spells (heterogeneity)....