Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 13

[Related to Applications 17.2 on pages 367] Explain the effects of unemployment insurance on frictional and structural unemployment. Then consider this: During the Great Recession, governments extended unemployment benefits dramatically-up to 99 weeks. Do you suppose that extending unemployment benefits during the Great Recession was a good idea or a bad idea? Argue some pros and cons of the benefits extension.