Extended Unemployment Benefits Didn’t Keep Unemployed From Taking Jobs

From HuffPo:
Extended unemployment benefits Congress put in place at the outset of the Great Recession didn’t discourage people from taking jobs, according to new research from the Federal Reserve Bank of San Francisco.
Princeton University economics professor Henry Farber and San Francisco Fed economist Rob Valletta found that extended benefits might have encouraged people to continue to look for work longer so that they could remain eligible for benefits. While the longer searches for jobs could have boosted the unemployment rate by four-tenths of a percentage point, the compensation didn’t make the long-term jobless unwilling to work.
“It did not reduce the job finding rate,” Farber told HuffPost. He added the benefits probably helped the economy, however, not to mention the individual people who otherwise might have had no income. “These are people who spend the money you give them.”
The findings are similar to 2011 research by Jesse Rothstein of the University of California, Berkeley.


The expanded federal unemployment insurance program that provides benefits to millions of long-term unemployed Americans is set to expire at the end of December. If Congress fails to extend it, roughly two million Americans could lose their monthly unemployment checks.
Department of Labor figures for December showed 13.1 million unemployed and actively looking for work, almost half of them for more than six months. Another 8.1 million were working part-time involuntarily, and 2.5 million were too discouraged to look for work.







