蝌蚪网 Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
The Impact of Unemployment Benefit Extensions on Employment: The 2014 Employment Miracle?
蝌蚪网 Journal: Macroeconomics
(pp. 168–203)
Abstract
We measure the aggregate effect of unemployment benefit duration on employment and the labor force. We exploit the variation induced by Congress' failure in December 2013 to reauthorize the unprecedented benefit extensions introduced during the Great Recession. Federal benefit extensions that ranged from 0 to 47 weeks across US states were abruptly cut to zero. In sharp contrast to their typical dynamics, labor force and employment growth accelerated sharply in states with larger cuts in benefit duration. These findings are consistent with the equilibrium search framework that assigns an important role to endogenous job creation.Citation
Hagedorn, Marcus, Iourii Manovskii, and Kurt Mitman. 2025. "The Impact of Unemployment Benefit Extensions on Employment: The 2014 Employment Miracle?" 蝌蚪网 Journal: Macroeconomics 17 (4): 168–203. DOI: 10.1257/mac.20200239Additional Materials
JEL Classification
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- E32 Business Fluctuations; Cycles
- J21 Labor Force and Employment, Size, and Structure
- J64 Unemployment: Models, Duration, Incidence, and Job Search
- J65 Unemployment Insurance; Severance Pay; Plant Closings