What happened to the US labor market after the Emergency Unemployment Compensation Act expired after the Great Recession?By Tyler Smith of The AEA. “In December 2013, when Congress failed to reauthorize the Emergency Unemployment Compensation Act, many prominent economists predicted a substantial decline in employment and labor force participation. In a paper in the American Economic Journal:…
The effects of unemployment benefit duration
Unemployment rate in Georgia is 40%
25 May 2020 Leave a comment
in economics of bureaucracy, health economics, income redistribution, labour economics, labour supply, macroeconomics, politics - USA, Public Choice, public economics, rentseeking, unemployment Tags: 2020 presidential election, economics of pandemics, moral hazard, unemployment insurance
How do workers put food on table when they drop out of the labour force after unemployment insurance cuts?
27 May 2018 Leave a comment
in applied price theory, labour economics, labour supply, politics - USA, poverty and inequality, unemployment Tags: social insurance, unemployment insurance, welfare state
The first @PaulKrugman explains European labour market regulation
02 Jan 2017 Leave a comment
in applied price theory, income redistribution, labour economics, labour supply, law and economics, minimum wage, Public Choice, rentseeking Tags: employment law, labour market regulation, minimum wage laws, rent control, social insurance, unemployment insurance
Source: Unmitigated Gauls (1998).
% of unemployment that is more than 12 months, USA, UK, Germany and France
14 Aug 2015 Leave a comment
in currency unions, Euro crisis, job search and matching, labour economics, labour supply, macroeconomics, unemployment Tags: British economy, equilibrium unemployment rate, France, Germany, long-term unemployment, natural unemployment rate, social insurance, unemployment duration, unemployment insurance, welfare state
As the British labour market and long-term unemployment was starting to get something like that in the USA, the USA started to have unemployment it was more like the European labour markets in terms of the number of long-term unemployed. Nothing much happened in Germany and France.
Source: OECD StatExtract.
German unemployment incidence by duration since 1983
11 Aug 2015 Leave a comment
in economic history, Euro crisis, fiscal policy, job search and matching, labour economics, labour supply, macroeconomics, unemployment, welfare reform Tags: equilibrium unemployment rate, Eurosclerosis, German unification, Germany, natural unemployment rate, poverty traps, unemployment duration, unemployment insurance, welfare state
German long term unemployment has been pretty stable albeit with an up-and-down after German unification. There is also a fall in long-term unemployment after some labour market reforms around 2005.
Source: OECD StatExtract.
This time it is different: unemployment incidence by duration, USA, 1968 – 2014
08 Aug 2015 1 Comment
in budget deficits, great recession, job search and matching, labour economics, labour supply, macroeconomics, politics - USA, unemployment, welfare reform Tags: natural unemployment rate, taxation and labour supply, unemployment duration, unemployment insurance, unemployment rates, welfare state
The Great Recession was the first recession in the USA in a good 40 to 50 years where the composition of employment changed by much. Even the big recession at the beginning of the 1980s did not do much to the composition of unemployment by duration in the USA.
Source: OECD StatExtract.
Those unemployed for more than a year moved from barely double digits even in a bad recession prior to 2008 to coming on one-third of all unemployed. Likewise, those unemployed for less than a month halved from 40% to 20%. Something changed in the US labour market with the Great Recession and the long extensions of unemployment insurance from 26 weeks to 52 weeks and then 99 weeks.
Utopia, you are standing in it! 
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