Higher Unemployment Benefits-Higher Unemployment
New study confirms the obvious-if you subsidize unemployment more then you will have more unemployment. The authors evaluate recent Finnish experience after they in 2003 raised short-term unemployment benefits for the first 150 days of unemployment. The result was that the duration of unemployment for those receiving the higher benefits rose significantly even as it actually fell for those not eligible for the increased benefits. The authors estimate that the 15% increase caused a 31 day increase in umeployment duration.
Not exactly shocking results, but when Social Democrats try to deny the obvious truth such studies can be valuable.
Not exactly shocking results, but when Social Democrats try to deny the obvious truth such studies can be valuable.
posted by stefankarlsson at 7:28 PM
2 Comments:
"The authors estimate that the 15% increase caused a 31 day increase in umeployment duration."
This is not necessarily a bad thing. Maybe people just had more time to find a better match. Depends on which groups this increase concerns, and what is the true reason for the increase. But to find this out, you'd need a much deeper analysis of the impacts on efficiency (admittedly, such a study is difficult to perform).
The payday loan industry has been the main target for corrupt politicians from all sides. They are searching an increase in voter support disregarding what’s best for their citizens. Several states including Georgia, North Carolina, and Oregon has successfully wiped out the payday loan industry. For example, in Georgia, foreclosures, bankruptcy filing and bounced checks has raise tremendously after the cash advance product was done away with. Despite this unfortunate fact, several governors continue to try and follow this suit. Presidential hopeful, Barack Obama and many other politicians with high positions have joined the march to wipe the industry completely off the map. If this action takes place, the true possibilities of increased unemployment rates, debts and foreclosure will also take its place.
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