The EUC08 Program in Theoretical and Historical Perspective Final Report
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About the Report
The goal of the report is to place the Emergency Unemployment Compensation Act of 2008 (EUC08) program (together with its many additions and amendments) into a theoretical and historical context in order to highlight the similarities and differences among similar programs. Specifically, the researchers show that despite its similarity to earlier programs, EUC08 differed in three important ways from its predecessors: (1) The program was implemented earlier in the recession (that started in December 2007) than were most previous emergency programs; (2) The program contained several provisions that made the Extended Benefits (EB) program more attractive to states so that this program played a larger role in the current recessions than it has in the recent past; and (3) the program was accompanied by a number of other important unemployment compensation (UC) related provisions contained in the American Recovery and Reinvestment Act of 2009 (ARRA).
This report is divided into five major sections. Section I provides a conceptual background for extended benefits programs by looking at the rapidly expanding literature on “optimal UI,” focusing most extensively on the potential duration of benefits as a policy parameter. Section II provides an overview of the major extended benefits programs that have been implemented since 1970, and summarizes the key components of EUC08 and its amendments. Section III takes a quantitative approach to comparing the extended benefits programs by summarizing some of their aggregate characteristics. Section IV provides a summary of the empirical studies of the impacts of these programs. Finally, Section V provides some concluding comments and summarizes the research questions that will guide the subsequent research on the most recent extended benefits package.
Research Questions
- What were states’ experiences in implementing EUC08 and related programs?
- Who collected EUC08 benefits?
- How did eligibility for EUC08 affect UC recipients’ behavior?
- How well did EUC08 and related programs help to stabilize the economy?
Key Takeaways
- Extended benefits programs have played an important role in the government’s response to recessions over the past 40 years. Although the most recent such program, EUC08, is considerably larger than any of its predecessors, it shares many features that have characterized the earlier initiatives.
- EUC08 also exhibits unique characteristics that set it apart from the earlier emergency programs.
- The UC modernization provisions incorporated in the ARRA also may have an effect on how EUC08 performed.
Citation
Nicholson, W., Needels, K. (2011). Mathematica. The EUC08 Program in Theoretical and Historical Perspective. Chief Evaluation Office, U.S. Department of Labor.
The Department of Labor’s (DOL) Chief Evaluation Office (CEO) sponsors independent evaluations and research, primarily conducted by external, third-party contractors in accordance with the Department of Labor Evaluation Policy and CEO’s research development process.