This paper isolates the disincentive effects of pandemic unemployment insurance (UI) benefits on employment recovery, separating them from the simultaneously operating stimulative (demand) effects …
Using PSID panel data and a calibrated heterogeneous-household business-cycle model, this chapter shows that a sufficiently large mass of low-wealth, non-hand-to-mouth households who sharply raise …
Online FirstReview of Economic StudiesOnline 18 Jun 2026
Seven U.S. states permanently cut unemployment insurance (UI) benefits by 30–64 percent between 2011 and 2014, providing the study's quasi-experimental variation.