We calculate that the extension of unemployment insurance benefits during downturns has significantly increased the variability of unemployment and vacancies in the United States. Taking this into account reduces the value of leisure necessary to match the wide labor market business cycles experienced in the United States using the Mortensen--Pissarides model. For this calculation, we analyze a version of the model where unemployment insurance benefits not only expire but must be earned with prior employment. With these features, we can calibrate the model to be consistent with unemployment responding strongly to productivity shocks and mildly to changes in unemployment insurance policies. Our preferred calibration predicts that the standard deviation of unemployment since 1945 would have fallen by around 37% if there had not been programs extending unemployment benefits during recessions. We also find that the enactment of the Emergency Unemployment Compensation program in 2008 increased the unemployment rate by 0.5 percentage points.
In the introduction of this book, Arthur Cohen states that The Shaping of American Higher Education is less a history than a synthesis. While accurate, this depiction in no way detracts from the value of the book. This work synthesizes the first three centuries of development of high-er education in the United States. A number of books detail the early history of the American collegiate system; however, this book also pro-vides an up-to-date account of developments and context for under-standing the transformation of American higher education in the last quarter century. A broad understanding of the books subtitle, Emergence and Growth of the Contemporary System, is truly realized by the reader.
The Financing of Extended Unemployment Insurance Benefits in the United States.