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- Title
THE WORK DISINCENTIVE EFFECT OF EXTENDED UNEMPLOYMENT COMPENSATION: RECENT EVIDENCE.
- Authors
Grossman, Jean Baldwin
- Abstract
Abstract--Extensions of unemployment compensation (UC) during recessionary periods to individuals who have exhausted their regular unemployment insurance (UI) are a recurring phenomenon, yet relatively little is known about either (1) the work disincentive effect among UI exhaustees or (2) how the effect varies as benefits become more responsive to labor market conditions. We estimate the work disincentive effect on UI exhaustees of the most recent UC extension program, the Federal Supplemental Compensation program, finding it much larger than (previously published) work disincentive estimates for all UC recipients. Comparing our estimate with previously estimated work disincentive effects for two alternatively structured extension programs indicates that the sensitivity of the benefits to the labor market had little effect on work disincentives.
- Subjects
UNEMPLOYMENT insurance; SUPPLEMENTAL unemployment benefits; LABOR market; WAGES; LABOR supply; UNEMPLOYMENT; INSURANCE
- Publication
Review of Economics & Statistics, 1989, Vol 71, Issue 1, p159
- ISSN
0034-6535
- Publication type
Article
- DOI
10.2307/1928063