Data and Code for: Assessing the Stabilizing Effects of Unemployment Benefit Extensions

Principal Investigator(s):  View help for Principal Investigator(s) Alexey Gorn, University of Liverpool Management School; Antonella Trigari, Bocconi University, CEPR and IGIER

Version:  View help for Version V1

Name File Type Size Last Modified
  Data 03/15/2023 12:02:PM
  ExogenousShocks 06/26/2023 08:14:AM
  Figures 08/07/2023 04:38:AM
  Functions 03/15/2023 12:03:PM
  Models 08/07/2023 04:34:AM
  Simulations 08/07/2023 04:42:AM
  Tables 08/07/2023 04:36:AM
LICENSE.txt text/plain 15.2 KB 03/15/2023 08:01:AM
README.pdf application/pdf 170.8 KB 06/26/2023 04:28:AM
main.m text/x-matlab 7.5 KB 03/15/2023 08:01:AM

Project Citation: 

Gorn, Alexey, and Trigari, Antonella. Data and Code for: Assessing the Stabilizing Effects of Unemployment Benefit Extensions. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-12-15. https://doi.org/10.3886/E186461V1

Project Description

Summary:  View help for Summary We study the stabilizing role of benefit extensions. We develop a tractable quantitative model with heterogeneous agents, search frictions, and nominal rigidities. The model allows for a stabilizing aggregate demand channel and a destabilizing labor market channel. We characterize each channel analytically and find that aggregate demand effects quantitatively prevail in the US. When feeding-in estimated shocks, the model tracks unemployment in the two most recent downturns. We find that extensions lowered unemployment by a maximum of 0.35 pp in the Great Recession, while the joint stabilizing effect of extensions and benefit compensation peaked at 1.08 pp in the pandemic.

Scope of Project

Subject Terms:  View help for Subject Terms cyclical unemployment insurance; heterogeneous agents; search frictions; nominal rigidities; Great Recession; Covid-19 recession
JEL Classification:  View help for JEL Classification
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      E32 Business Fluctuations; Cycles
      E52 Monetary Policy
      J63 Labor Turnover; Vacancies; Layoffs
      J64 Unemployment: Models, Duration, Incidence, and Job Search
      J65 Unemployment Insurance; Severance Pay; Plant Closings
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 1972 – 2022
Data Type(s):  View help for Data Type(s) aggregate data


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V1 [2023-12-15]

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