A Job Losers' Stimulus...
A very smart piece from Iona Marinescu. One of the frequent complaints about unemployment insurance is that it is not incentive-compatible on the job search dimension. A cash bounty for those losing their jobs whether or not they get quickly reemployed would eliminate this worry:
Ioana Marinescu: Moving from Federal Pandemic Unemployment Compensation to a Job Losers' Stimulus Program Amid the Coronavirus Recession https://equitablegrowth.org/moving-from-federal-pandemic-unemployment-compensation-to-a-job-losers-stimulus-program-amid-the-coronavirus-recession/: 'My proposed policy, the job losers' stimulus program, is a cash stimulus for workers who have lost their jobs regardless of whether they remain unemployed or find new employment. Compared to only providing higher unemployment benefits to the unemployed, the job losers' stimulus program boasts the twin benefits of providing greater support to workers who have been most affected by pandemic-related job losses while also modestly increasing overall employment. The exact size of the impact of this new stimulus program is difficult to predict, but a simple policy simulation shows that it could increase the amount of stimulus by 34 percent and allow an additional 6 percent of workers to exit unemployment and return to work within 4 months of losing their jobs... #equitablegrowth #noted #2020-06-08
