We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
Spending and Job-Finding Impacts of Expanded Unemployment Benefits: Evidence from Administrative Micro Data.
- Authors
Ganong, Peter; Greig, Fiona; Noel, Pascal; Sullivan, Daniel M.; Vavra, Joseph
- Abstract
We show that the largest increase in unemployment benefits in US history had large spending impacts and small job-finding impacts. This finding has three implications. First, increased benefits were important for explaining aggregate spending dynamics—but not employment dynamics—during the pandemic. Second, benefit expansions allow us to study the MPC of normally low-liquidity households in a high-liquidity state. These households still have high MPCs. This suggests a role for permanent behavioral characteristics, rather than just current liquidity, in driving spending behavior. Third, the mechanisms driving our results imply that temporary benefit supplements are a promising countercyclical tool. (JEL E21, E24, E32, E62, E71, G51, J65)
- Subjects
UNEMPLOYMENT insurance; MOTOR vehicle driving; HOUSEHOLDS; LIQUIDITY (Economics); PANDEMICS
- Publication
American Economic Review, 2024, Vol 114, Issue 9, p2898
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.20220973