Between a rock and a hard place: The costs and benefits of expanded unemployment insurance benefits

• 成果类型: Article
• 署名作者: Hamdi, Naser; Kalda, Ankit; Sovich, David
• 署名单位: Pennsylvania State System of Higher Education (PASSHE); Indiana University of Pennsylvania; University of Kentucky
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2024.105295
• 发表日期: 2025
• 关键词: Unemployment insurance; social insurance; Covid-19; job search; default

摘要

We examine how the withdrawal of the largest expansion of unemployment insurance (UI) benefits in United States history affected job-finding, demand for other government assistance, and credit defaults. Using administrative UI data merged with credit records and applications for Medicaid and SNAP, we show that UI withdrawal led to an increase in job-finding that was most pronounced among financially constrained individuals with limited available credit. The cost savings from higher job-finding came at the expense of increased demand for other government services and higher defaults. Our results highlight an important interaction between UI, household finances, and other social insurance programs.