NBER: 2014 Employment Boom may've been caused by expiring unemployment benefits

[Atreus21]

http://c0.nrostatic.com/sites/default/files/w20884.pdf

From the abstract:

We find that a 1% drop in benefit duration leads to a statistically significant increase of employment by 0.0161 log points. In levels, 1.8 million additional jobs were created in 2014 due to the benefit cut. Almost 1 million of these jobs were filled by workers from out of the labor force who would not have participated in the labor market had benefit extensions been reauthorized.

http://www.nationalreview.com/corne...ly-due-expiration-unemployment-benefits-obama

The authors don’t think this happened the way you think it might: It’s not so much that the cut-off drove individuals on benefits back to work, but more that less-generous benefits actually spurred job creation on a macro level, getting employers to hire and drawing into the labor force people who hadn’t been looking for a job. They don’t lay out how that worked, but in their October 2013 paper, argue that extended unemployment benefits artificially boosts wages — when they expire, employers then boost job openings and start hiring people.

I confess I haven't read the whole study yet. And I probably won't because they use things like this:

 

[Mxylplyx]

http://c0.nrostatic.com/sites/default/files/w20884.pdf

From the abstract:



http://www.nationalreview.com/corne...ly-due-expiration-unemployment-benefits-obama



I confess I haven't read the whole study yet.

The economy booming in America relative to the rest of the world upends many political narratives that have been sold as absolute truth over the years. How longer can you continue to argue that Obamacare is a job killer when reality shows it's not a job killer. How longer can you continue to claim that quantitative easing and loose monetary policy is going to debase the dollar, when inflation is well in check here, and Europe, which chose fiscal austerity instead, remains in a slump and on the brink of a deflationary cycle, and is now enacting their own QE efforts. I bet many Republicans are hoping the economy turns around fast, ie goes back in the shitter, or they are going to have to answer some rather tough questions in the 2016 elections. Them trying to take up the issue of stalled middle class wages is awkward enough given their affection for supply side economics.

 

[Atreus21]

The economy booming in America relative to the rest of the world upends many political narratives that have been sold as absolute truth over the years. How longer can you continue to argue that Obamacare is a job killer when reality shows it's not a job killer. How longer can you continue to claim that quantitative easing and loose monetary policy is going to debase the dollar, when inflation is well in check here, and Europe, which chose fiscal austerity instead, remains in a slump and on the brink of a deflationary cycle, and is now enacting their own QE efforts. I bet many Republicans are hoping the economy turns around fast, ie goes back in the shitter, or they are going to have to answer some rather tough questions in the 2016 elections. Them trying to take up the issue of stalled middle class wages is awkward enough given their affection for supply side economics.

Well that was on topic.

 

[child of wonder]

Wouldn't surprise me. I know several people who have milked unemployment benefits for far longer than necessary.

It's a nice safety net but some prefer to lay in the safety net rather than get back up and try again.

 

[glenn1]

Wouldn't surprise me. I know several people who have milked unemployment benefits for far longer than necessary.

It's a nice safety net but some prefer to lay in the safety net rather than get back up and try again.

Perhaps, although I'd say for a lot more folks they'd want employment but are stuck in a terrible area like Detroit with precious few jobs to be had. If unemployment is to be extended again I'd much rather help people move to an area with jobs than simply give them a check for 99 weeks in some economic wasteland.

 

[child of wonder]

Perhaps, although I'd say for a lot more folks they'd want employment but are stuck in a terrible area like Detroit with precious few jobs to be had. If unemployment is to be extended again I'd much rather help people move to an area with jobs than simply give them a check for 99 weeks in some economic wasteland.

Can't argue there. Throwing money at unemployed people in areas where there are no jobs won't solve anything.

 

[Matt1970]

The economy booming in America relative to the rest of the world upends many political narratives that have been sold as absolute truth over the years. How longer can you continue to argue that Obamacare is a job killer when reality shows it's not a job killer. How longer can you continue to claim that quantitative easing and loose monetary policy is going to debase the dollar, when inflation is well in check here, and Europe, which chose fiscal austerity instead, remains in a slump and on the brink of a deflationary cycle, and is now enacting their own QE efforts. I bet many Republicans are hoping the economy turns around fast, ie goes back in the shitter, or they are going to have to answer some rather tough questions in the 2016 elections. Them trying to take up the issue of stalled middle class wages is awkward enough given their affection for supply side economics.

That covered just about everything, you went from Obamacare to supply side economics.

 

[cabri]

I do not think that jobs were being created; but more that jobs were now being filled because some income having to work at it is better than no income at all.

Those jobs previously existed, but were unfilled because of unemployment benefits made if not economical to drop the $$ available for doing nothing and now have towork for it.

 

[theeedude]

But we were told labor participation was shrinking?

 

[Jhhnn]

From the quote-

They don’t lay out how that worked

But the National Review knows it'll be greeted as red meat by the faithful, confirmation of deeply held belief in their own righteousness & superiority.

Can we get the Church Lady Superior Dance?

 

[feralkid]

May've?

 

[Atreus21]

May've?

May have.

Sue me.