The Consumption Response to Extended Unemployment Benefits in the Great Recession

2015 ◽  
Author(s):  
Graham McKee ◽  
Emil Verner
Keyword(s):  
Great Recession ◽  
Unemployment Benefits ◽  
The Great Recession

scholarly journals The inevitable deservingness gap: A study into the insurmountable immigrant penalty in perceived welfare deservingness

2018 ◽  
Vol 29 (2) ◽  
pp. 166-181 ◽  
Author(s):  
Tim Reeskens ◽  
Tom van der Meer
Keyword(s):  
Labour Market ◽  
Great Recession ◽  
Unemployment Benefits ◽  
Target Groups ◽  
Welfare Provision ◽  
The Great Recession ◽  
Political Debates ◽  
Foreign Origin ◽  
Vignette Experiment

As the asylum crisis hit Europe in tandem with the Great Recession, concerns about declining support for equal welfare provision to immigrants grow. Although studies on welfare deservingness show that immigrants are deemed least entitled to welfare compared to other target groups, they have fallen short of isolating welfare claimants’ identity (i.e. foreign origin) with competing deservingness criteria that might explain the immigrant deservingness gap. This article studies the importance of welfare claimants’ foreign origins relative to other theoretically relevant deservingness criteria via a unique vignette experiment among 23,000 Dutch respondents about their preferred levels of unemployment benefits. We show that foreign origin is among the three most important conditions for reduced solidarity, after labour market reintegration behaviour (reciprocity) and culpability for unemployment (control). Furthermore, favourable criteria do not close the gap between immigrants and natives in perceived deservingness, emphasizing the difficulty of overcoming the immigrant penalty in perceived welfare deservingness. We conclude our findings in the light of ongoing theoretical and political debates.

scholarly journals Short-Time Work and Unemployment in and after the Great Recession

2021 ◽  
Author(s):  
Daniel Kopp ◽  
Michael Siegenthaler
Keyword(s):  
Panel Data ◽  
Labor Force ◽  
Administrative Data ◽  
Great Recession ◽  
Data Sources ◽  
Unemployment Benefits ◽  
The Great Recession ◽  
Time Work ◽  
Short Time

Abstract We study whether the Swiss short-time work (STW) program reduced unemployment in and after the Great Recession using quarterly establishment-level panel data linking administrative data sources. We compare changes in layoffs into unemployment, employment, and establishment survival between establishments that applied successfully and establishments that applied unsuccessfully for STW at cantonal employment agencies. The unsuccessful establishments provide a valid counterfactual for the successful ones because cantonal approval practices are partly idiosyncratic. We find that STW increases establishment survival and prevents rather than postpones dismissals. The 7,857 establishments treated in 2009 would have dismissed 20,600 additional workers into unemployment (0.47% of the labor force) until 2012. Most workers would have been dismissed in the quarters immediately following the application, and more than a third would have become long-term unemployed. The savings on unemployment benefits may have compensated for the spending on STW benefits.

scholarly journals Reassessing the Effects of Extending Unemployment Insurance Benefits

2014 ◽  
pp. 1-6
Author(s):  
Pedro Amaral ◽  
Jessica Ice
Keyword(s):  
Unemployment Insurance ◽  
Unemployment Rate ◽  
Great Recession ◽  
Job Creation ◽  
Unemployment Benefits ◽  
Insurance Benefits ◽  
The Great Recession ◽  
High Level ◽  
The Impact ◽  
The Way

To deal with the high level of unemployment during the Great Recession, lawmakers extended the availability of unemployment benefits—all the way to 99 weeks in the states where unemployment was highest. A recent study has found that the extensions served to increase unemployment significantly by putting upward pressure on wages, leading to less jobs creation by firms. We replicate the methodology of this study with an updated and longer sample and find a much smaller impact. We estimate that the impact of extending benefits on unemployment through wages and job creation can, at its highest, account for only one-fourth of the increase in the unemployment rate; an impact that is much lower than other estimates in the literature.

scholarly journals Unemployment Benefits and Unemployment in the Great Recession: The Role of Macro Effects

2013 ◽  
Author(s):  
Marcus Hagedorn ◽  
Fatih Karahan ◽  
Iourii Manovskii ◽  
Kurt Mitman
Keyword(s):  
Great Recession ◽  
Unemployment Benefits ◽  
The Great Recession

Fiscal policies in a monetary union: the eurozone case

2020 ◽  
Vol 17 (2) ◽  
pp. 156-170
Author(s):  
Gennaro Zezza
Keyword(s):  
Great Recession ◽  
Public Expenditure ◽  
Fiscal Policies ◽  
Unemployment Benefits ◽  
Medium Term ◽  
The Great Recession ◽  
Financial Position ◽  
Fiscal Austerity ◽  
Severe Recession ◽  
The Cost

We argue that the institutional framework of the eurozone was designed to deny a role for fiscal policy. However, the Great Recession of 2008–2009 forced governments to intervene, mainly to avoid the collapse of their financial systems. At the same time, the severe recession implied a decrease in tax revenues, and an increase in some components of public expenditure – such as unemployment benefits, which implied an increase in public deficits. When the crisis seemed to be over, the Maastricht rules gave priority to restoring fiscal targets, even at the cost of prolonged unemployment and stagnation in countries like Greece and Italy. Using the three-balances approach pioneered by Godley, we argue that such policies require the achievement of an external surplus, or else fiscal austerity will worsen the financial position of the private sector. We show that this is indeed how most eurozone countries moved, and argue that such policies are fragile, and possibly not sustainable in the medium term. We suggest the introduction of fiscal currencies as one way of introducing a degree of freedom in the sustainability of the eurozone.

scholarly journals Unemployment Benefits and Unemployment in the Great Recession: The Role of Macro Effects

2013 ◽  
Author(s):  
Marcus Hagedorn ◽  
Fatih Karahan ◽  
Iourii Manovskii ◽  
Kurt Mitman
Keyword(s):  
Great Recession ◽  
Unemployment Benefits ◽  
The Great Recession
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