Authors: Marcus Hagedorn, Fatih Karahan, Iourii Manovskii, and Kurt Mitman
-
-
The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
Do you have a request for information and records? Learn how to submit it.
Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video.
-
-
-
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
Need to file a report with the New York Fed? Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.
The New York Fed works to protect consumers as well as provides information and resources on how to avoid and report specific scams.
-
-
-
The New York Innovation Center bridges the worlds of finance, technology, and innovation and generates insights into high-value central bank-related opportunities.
The growing role of nonbank financial institutions, or NBFIs, in U.S. financial markets is a transformational trend with implications for monetary policy and financial stability.
The New York Fed offers the Central Banking Seminar and several specialized courses for central bankers and financial supervisors.
-
-
-
We are connecting emerging solutions with funding in three areas—health, household financial stability, and climate—to improve life for underserved communities. Learn more by reading our strategy.
The Economic Inequality & Equitable Growth hub is a collection of research, analysis and convenings to help better understand economic inequality.
The Governance & Culture Reform hub is designed to foster discussion about corporate governance and the reform of culture and behavior in the financial services industry.
-
Staff Reports
Unemployment Benefits and Unemployment in the Great Recession: The Role of Equilibrium Effects
Previous Title: "Unemployment Benefits and Unemployment in the Great Recession: The Role of Macro Effects"
October 2013 Number 646
Revised September 2019
October 2013 Number 646
Revised September 2019
JEL classification: E24, J63, J64, J65
Equilibrium labor market theory suggests that unemployment benefit extensions affect
unemployment by impacting both job search decisions by the unemployed and job creation
decisions by employers. The existing empirical literature focused on the former effect only. We
develop a new methodology necessary to incorporate the measurement of the latter effect.
Implementing this methodology in the data, we find that benefit extensions raise equilibrium
wages and lead to a sharp contraction in vacancy creation and employment and a rise in
unemployment.
Tools
E-mail Alerts
By continuing to use our site, you agree to our Terms of Use and Privacy Statement. You can learn more about how we use cookies by reviewing our Privacy Statement. 
