An Analysis of Some of the Effects of Increasing the Duration of Regular Unemployment Insurance Benefits

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An Analysis of Some of the Effects of Increasing the Duration of Regular Unemployment Insurance Benefits

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1978-5

Publication Info

During the past 20 years it has been found that the duration of benefits is not adequate during periods of ?high? unemployment and in many small areas during periods of ?normal? unemployment. In response to this problem, the Federal-State Extended Benefits (EB) Program was enacted. This program permits eligible individuals to receive benefits equal to one-half of their entitlement under the regular State unemployment insurance program up to a maximum of 39 ?weeks? during periods of specified high unemployment. The ?triggering? mechanism used by the EB Program to determine when a State is experiencing high employment has been criticized because it does not equitably define periods of high unemployment among States, within States, and among individuals. One alternative to a ?triggering? mechanism is to permanently increase the duration of regular State unemployment insurance up to a maximum of 39 ?weeks?. The purpose of this study is to explore alternative formulas for providing additional duration under the regular benefit program.