The Broader Market

by Heather Boushey, Jordan Eizenga and Matt Separa

A new paper by Jesse Rothstein, a professor of public policy and economics from the University of California Berkeley and former chief economist at the Department of Labor, throws cold water on the notion — touted by many conservatives — that extending unemployment insurance benefits provides a strong disincentive for the unemployed to look for work and thus, is a major reason for our persistently high unemployment rate.

Using data from the Department of Labor’s Current Population Survey, Rothstein demonstrates that extensions of unemployment benefits have actually had a very small effect on the unemployment rate during the Great Recession. He estimates that extended unemployment benefits have raised the unemployment rate by between 0.2 and 0.6 percentage points. And about half or more of that increase is attributable to individuals who remained in the labor force and searching for a job because unemployment benefits allowed them to continue to do so.

For more of the article, see here.

by Heather Boushey and Jordan Eizenga

House Republicans introduced the Jobs, Opportunity, Benefits, and Services Act of 2011 or, as they prefer to call it, the JOBS Act of 2011, on May 11, 2011. To be clear, the JOBS Act, which provides an incentive for states to cut unemployment benefits, is less about creating jobs and more about hurting those who have lost one. The JOBS Act would greatly weaken an already fragile unemployment insurance system, jeopardize our still-fragile economic recovery, and provide undue hardship to millions of households. Congress should reject this legislation and instead focus on policies that create jobs and strengthen our economy.

by Heather Boushey and Jordan Eizenga

The purpose of the unemployment insurance system, as President Franklin D. Roosevelt noted upon signing the legislation into law, is both to alleviate hardships for the unemployed and to counter recessions….

Businesses can expect a dreary holiday shopping season if Congress does not continue benefits for the long-term unemployed.

By Melissa Boteach, Angie Kelley, Vanessa Cardenas, Saba Bireda, Jordan Eizenga, and Dr. Lesley Russell.

A Center for American Progress Action Fund article that addresses the central point that the Republican Pledge to America offers no meaningful vision for how to address the challenges facing communities of color.