Unemployment benefits and unemployment : the challenge of unemployment benefits is to protect workers while minimizing undesirable side effects

Robert Moffitt, Wonsik Ko

All developed economies have unemployment benefit programs to protect workers against major income losses during spells of unemployment. By enabling unemployed workers to meet basic consumption needs, the programs protect workers from having to sell their assets or accept jobs below their qualifications. The programs also help stabilize the economy during recessions. If benefits are too generous, however, the programs can lengthen unemployment and raise the unemployment rate. The policy challenge is to protect workers while minimizing undesirable side effects

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Year of publication:	June 2024
Authors:	Moffitt, Robert A. ; Ko, Wonsik
Publisher:	Bonn : Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Subject:	unemployment benefits \| unemployment \| recessions \| Arbeitslosenversicherung \| Unemployment insurance \| Arbeitslosigkeit \| Unemployment \| Theorie \| Theory \| Beschäftigungseffekt \| Employment effect \| Konjunktur \| Business cycle