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Did the $600 Unemployment Supplement Discourage Work?

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Abstract

People receiving unemployment insurance benefits during the COVID-19 recession were entitled to $600 of additional payments per week through July. This large increase in benefit payments raised a concern that recipients would delay returning to work. However, analysis suggests that the available aid would not outweigh the value of a longer-term stable income in workers’ decisions to accept job offers. Evidence from recent labor market outcomes confirms that the supplemental payments had little or no adverse effect on job search.

Suggested Citation

  • Nicolas Petrosky-Nadeau & Robert G. Valletta, 2020. "Did the $600 Unemployment Supplement Discourage Work?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2020(28), pages 01-05, September.
    • Handle: RePEc:fip:fedfel:88762
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    File URL: https://www.frbsf.org/economic-research/files/el2020-28.pdf
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    Cited by:

    1. Dias, Felipe A & Chance, Joseph, 2021. "COVID-19, Public Charge Rules, and Immigrant Employment in the United States," Institute for Research on Labor and Employment, Working Paper Series qt37f8w4sf, Institute of Industrial Relations, UC Berkeley.

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    Keywords

    Unemployment; Unemployment insurance;

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