Among the many spending cuts and tax increases legislated to take effect at the turn of the year, few policies have as direct an effect on those most affected by the recession than the expiration of extended unemployment insurance (UI) benefits. During the first week of January, roughly two million individuals will lose extended benefits with the expiration of legislation that temporarily increased the duration individuals can claim benefits.
As lawmakers consider whether to extend these benefits, The Hamilton Project’s Michael Greenstone and Adam Looney explore the evidence on unemployment insurance. They find that while these benefits make up only $30 billion of the roughly $500 billion ‘fiscal cliff,’ they have a disproportionate effect on the lives of the unemployed and their families, as well as on the aggregate economy. To read the full piece, click here.
Tomorrow, Hamilton Project Policy Director Adam Looney will answer questions about the costs and benefits of extending UI benefits during a live webchat moderated by POLITICO’s Vivyan Tran. For more information or to register for the webchat, click here.