Labor Supply Effects of Extended Unemployment Benefits

摘要

This study focuses on measures of employment instead of unemployment. The sample consists of former UI claimants from New York State who had established benefit years between September 1972 and August 1973, had collected their regular unemployment benefits in single unemployment spells, and had gone on to exhaust their 26 weeks of regular benefits. The study compares the postexhaustion labor force status of those with and without EB access, in order to investigate the labor supply effects of extended benefit duration. Extended benefit duration is found to have a work disincentive effect, but the effect is not as large as might have been supposed from the unemployment figures.