IDEAS home Printed from https://ideas.repec.org/a/fip/fedfel/93975.html
   My bibliography  Save this article

Unemployment Insurance Withdrawal

Author

Listed:

Abstract

Unemployment insurance benefits were expanded substantially to help overcome the pandemic labor market shock in early 2020. However, improved labor market conditions in early 2021 prompted many states to withdraw from the enhanced unemployment benefits programs several months before the federal program was scheduled to end in early September. A comparison of states that ended enhanced benefits early with those that maintained them suggests that the withdrawal is associated with a small pickup in employer hiring, consistent with prior studies that found the unemployment benefit expansions had modest effects.

Suggested Citation

  • Sarah Albert & Olivia Lofton & Nicolas Petrosky-Nadeau & Robert G. Valletta, 2022. "Unemployment Insurance Withdrawal," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2022(09), pages 1-05, April.
    • Handle: RePEc:fip:fedfel:93975
    as

    Download full text from publisher

    File URL: https://www.frbsf.org/wp-content/uploads/sites/4/el2022-09.pdf
    File Function: Full text - article PDF
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jesse Rothstein & Robert G. Valletta, 2017. "Scraping by: Income and Program Participation After the Loss of Extended Unemployment Benefits," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 36(4), pages 880-908, September.
    2. Holzer, Harry J. & Hubbard, Glenn & Strain, Michael R., 2021. "Did Pandemic Unemployment Benefits Reduce Employment? Evidence from Early State-Level Expirations in June 2021," IZA Discussion Papers 14927, Institute of Labor Economics (IZA).
    3. Nicolas Petrosky-Nadeau & Robert G. Valletta, 2021. "UI Generosity and Job Acceptance: Effects of the 2020 CARES Act," Working Paper Series 2021-13, Federal Reserve Bank of San Francisco.
    4. Ganong, Peter & Noel, Pascal & Vavra, Joseph, 2020. "US unemployment insurance replacement rates during the pandemic," Journal of Public Economics, Elsevier, vol. 191(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harry J. Holzer & Glenn Hubbard & Michael R. Strain, 2024. "Did pandemic unemployment benefits increase unemployment? Evidence from early state‐level expirations," Economic Inquiry, Western Economic Association International, vol. 62(1), pages 24-38, January.
    2. Andreas Hornstein & Marios Karabarbounis & Andre Kurmann & Etienne Lale & Lien Ta, 2023. "Disincentive Effects of Unemployment Insurance Benefits," Working Paper 23-11, Federal Reserve Bank of Richmond.
    3. Robert G. Valletta & Mary Yilma, 2024. "Enhanced Unemployment Insurance Benefits in the United States during COVID-19: Equity and Efficiency," Working Paper Series 2024-15, Federal Reserve Bank of San Francisco.
    4. John V Winters, 2022. "Young and hungry? Employment levels for young people during Spring 2021," Economics Bulletin, AccessEcon, vol. 42(2), pages 643-652.
    5. Stefanie Haeffele & Jordan K. Lofthouse & Agustin Forzani, 2023. "The Perils of Regulating COVID–19: Insights from Kirznerian Entrepreneurship and Ostromian Polycentricity," Economics of Governance, Springer, vol. 24(3), pages 331-355, September.
    6. Park, Sungbin & Lee, Kyung Min & Earle, John S., 2024. "Death Without Benefits: Unemployment Insurance, Re-Employment, and the Spread of Covid," SocArXiv 2fnkp, Center for Open Science.
    7. East, Chloe N. & Simon, David, 2024. "The safety net and job loss: How much insurance do public programs provide?," Journal of Public Economics, Elsevier, vol. 238(C).
    8. Guo, Angela & Krolikowski, Pawel & Yang, Meifeng, 2023. "Displaced workers and the pandemic recession," Economics Letters, Elsevier, vol. 226(C).
    9. Kapička, Marek & Rupert, Peter, 2022. "Labor markets during pandemics," Journal of Economic Theory, Elsevier, vol. 204(C).
    10. Robert Hartwig & Greg Niehaus & Joseph Qiu, 2020. "Insurance for economic losses caused by pandemics," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 45(2), pages 134-170, September.
    11. Adermon, Adrian & Laun, Lisa & Lind, Patrik & Olsson, Martin & Sauermann, Jan & Sjögren , Anna, 2022. "Earnings losses and the role of the welfare state during the COVID-19 pandemic: evidence from Sweden," Working Paper Series 2022:20, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    12. Di Fang & Michael R. Thomsen & Rodolfo M. Nayga & Wei Yang, 2022. "Food insecurity during the COVID-19 pandemic: evidence from a survey of low-income Americans," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 165-183, February.
    13. Natalie Cox & Peter Ganong & Pascal Noel & Joseph Vavra & Arlene Wong & Diana Farrell & Fiona Greig & Erica Deadman, 2020. "Initial Impacts of the Pandemic on Consumer Behavior: Evidence from Linked Income, Spending, and Savings Data," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 35-82.
    14. J. Carter Braxton & Gordon Phillips & Kyle Herkenhoff, 2018. "Can the Unemployed Borrow? Implications for Public Insurance," 2018 Meeting Papers 564, Society for Economic Dynamics.
    15. Finamor, Lucas & Scott, Dana, 2021. "Labor market trends and unemployment insurance generosity during the pandemic," Economics Letters, Elsevier, vol. 199(C).
    16. Ariel Kalil & Susan Mayer & Rohen Shah, 2023. "Scarcity and Inattention," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 7(1), pages 35-42, November.
    17. Jeffrey Clemens & Philip G. Hoxie & Stan Veuger, 2022. "Was Pandemic Fiscal Relief Effective Fiscal Stimulus? Evidence from Aid to State and Local Governments," NBER Working Papers 30168, National Bureau of Economic Research, Inc.
    18. Guido Matias Cortes & Eliza Forsythe, 2023. "Distributional impacts of the Covid-19 pandemic and the CARES Act," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(2), pages 325-349, June.
    19. Parolin, Zachary & Pignatti, Clemente, 2024. "Optimal Unemployment Insurance with Program Interactions," IZA Discussion Papers 17095, Institute of Labor Economics (IZA).
    20. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2020. "COVID-19 Is Also a Reallocation Shock," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 329-383.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedfel:93975. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.