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Free Slides from Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ Will Extension of Unemployment Benefits Help or Hurt the Economy? Post prepared  July 23 2010 Terms of Use:  These slides are made available under Creative Commons License  Attribution—Share Alike 3.0  . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook,  Introduction to Economics ,  from BVT Publishers.
Extending Unemployment Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ We are . . . providing immediate assistance to people who are out there looking for work.  But ultimately, our goal is to make sure the people who are looking for a job can find a job.  www.whitehouse.gov . Picture and statement on economy, July 22,  2010
Duration of Unemployment ,[object Object],[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
Long-term Unemployment: Historical Comparison ,[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ Long-term unemployment always rises during and just after a recession, but the increase during the latest recession has been by far the highest for the past 60 years
Unemployment Extension as Social Policy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
Job Market Effects: Duration of Unemployment  ,[object Object],[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ Vertical  scale shows ratio of benefit to previous wage in first year of unemployment. Horizontal scale is artificial; higher number shows longer duration, but not measured in years. Number in box shows percentage of  long-term unemployed among all unemployed. Data source: OECD
Basic Job Search Model ,[object Object],[object Object],[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
Effect of Reservation Wage on Unemployment ,[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
Effects of Unemployment Benefits on Job Search ,[object Object],[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
Do Benefits Help or Harm the Job Market? ,[object Object],[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ Photo source: http://commons.wikimedia.org/wiki/File:FEMA_-_29783_-_Workers_unemployed_by_the_freeze_in_California.jpg
Macroeconomic Effects ,[object Object],[object Object],[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
The Bottom Line ,[object Object],[object Object],[object Object],[object Object],[object Object],Post P100723 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ Testifying before Congress on July 22, Fed Chairman Ben Bernanke called unemployment “our most important problem” and favored maintaining moderate fiscal stimulus for the time being

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Will extension of unemployment benefits help or hurt the economy

  • 1. Free Slides from Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ Will Extension of Unemployment Benefits Help or Hurt the Economy? Post prepared July 23 2010 Terms of Use: These slides are made available under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics , from BVT Publishers.
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