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Unemployment benefits and unemployment

Author

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  • Robert Moffitt

    (Johns Hopkins University, USA)

  • Wonsik Ko

    (Johns Hopkins University, USA)

Abstract

All developed economies have unemployment benefit programs to protect workers against major income losses during spells of unemployment. By enabling unemployed workers to meet basic consumption needs, the programs protect workers from having to sell their assets or accept jobs below their qualifications. The programs also help stabilize the economy during recessions. If benefits are too generous, however, the programs can lengthen unemployment and raise the unemployment rate. The policy challenge is to protect workers while minimizing undesirable side effects.

Suggested Citation

  • Robert Moffitt & Wonsik Ko, . "Unemployment benefits and unemployment," IZA World of Labor, Institute of Labor Economics (IZA), pages 132-132, June.
    • Handle: RePEc:iza:izawol:journl:2024:n:13v2
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    References listed on IDEAS

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    Cited by:

    1. Moffitt, Robert & Ziliak, James, 2020. "COVID-19 and the U.S. Social Safety Net," Economics Working Paper Archive 64317, The Johns Hopkins University,Department of Economics.
    2. Robert A. Moffitt & James P. Ziliak, 2020. "COVID‐19 and the US Safety Net," Fiscal Studies, John Wiley & Sons, vol. 41(3), pages 515-548, September.
    3. World Bank & Coll-Black,Sarah & Von Lenthe,Cornelius Claus & Koettl-Brodmann,Stefanie, 2023. "Social Protection in a World of Crisis : Learning from the Response to the COVID-19 Pandemicin Eastern Europe and the South Caucasus," Social Protection Discussion Papers and Notes 183521, The World Bank.
    4. Groves, Jeremy & Wilcox, Virginia, 2023. "The impact of overweight and obesity on unemployment duration among young American workers," Economics & Human Biology, Elsevier, vol. 51(C).
    5. Rainer Eppel & M. Fink & Helmut Mahringer, 2016. "Die Wirkung zentraler Interventionen des AMS im Prozess der Vermittlung von Arbeitslosen," WIFO Studies, WIFO, number 59029, July.
    6. Rainer Eppel & Helmut Mahringer, 2019. "Getting a lot out of a little bit of work? The effects of marginal employment during unemployment," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(2), pages 381-408, May.

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    More about this item

    Keywords

    unemployment benefits; unemployment; recessions;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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