Weekend Reading: Martin Luther King, Jr. (1963): The Promissory Note and the Bank of Justice

I was remiss a couple of years ago in not highlighting this by four very good friends of Equitable Growth. During the Great Recession, unemployment-benefit extensions had essentially no effect discouraging employment at all: nobody took advantage of the unemployment-benefit extension to take an extra vacation on Uncle Sam's dime:

Christopher Boone, Arindrajit Dube, Lucas Goodman, and Ethan Kaplan (2017): Unemployment Insurance and Employment during the Great Recession: "We compare 1,161 county pairs that straddle the border between two states, such as Allegany County, Maryland, and Bedford County, Pennsylvania. Within each pair, counties share a similar geography and economic environment, but may have... different lengths of benefits, largely due to the economic situations in the rest of the state.... Extending benefits by 73 weeks increased the employment-to-population (EPOP) ratio by 0.2%, a negligible amount that is not statistically significant. While our employment estimates are not statistically distinguishable from zero, they do rule out moderate-sized negative employment effects of the UI extensions on EPOP of 0.5% or more...

#noted #2019-10-06