During the Great Recession, the unemployment rate in the United States rose dramatically, prompting a number of economic policy responses. One policy adopted by lawmakers was extending unemployment benefits. Benefit duration increased from its standard 26-week maximum to as long as 99 weeks. Although this policy is intended to ease the hardship of losing a job, recent evidence suggests that the value it adds to not having a job puts upward pressure on wages and consequently decreases hiring.
Read Full Article »
