- Employment Effects of Pandemic Emergency Unemployment Benefits: Incentives Matter
FRB of St. Louis
Emergency unemployment benefits were introduced early in the COVID-19 pandemic to ease its impact on the U.S. labor market. Over the next year, employment recovered considerably.
A 2022 working paper from this article’s authors found that terminating emergency unemployment benefit programs caused a substantial increase in employment.
An extension of the working paper’s analysis showed that halting these programs affected the employment of younger and older workers differently.