Spending and Job-Finding Impacts of Expanded Unemployment Benefits: Evidence from Administrative Micro Data

• 成果类型: Article
• 署名作者: Ganong, Peter; Greig, Fiona; Noel, Pascal; Sullivan, Daniel M.; Vavra, Joseph
• 署名单位: University of Chicago; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20220973
• 发表日期: 2024
• 页码: 2898-2939
• 关键词: macroeconomic approach; INSURANCE BENEFITS; income; BEHAVIOR; MODEL

摘要

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.