Do Jobless Benefits Discourage People From Finding Jobs?

One feature of the unemployment insurance program is that it specifies an exhaustion date: a person stops receiving benefits when he or she starts working again, or reaches the exhaustion date (often a fixed number of weeks after being laid off), whichever comes first.

In the past, economists observed that a large fraction of unemployed people suddenly started working again within a week or so of their exhaustion date, despite having been without work for so many weeks prior: evidence that the benefits themselves were sustaining unemployment.

If the Congressional Budget Office, Professor Krugman and others were correct, this pattern would be absent during a recession, because the demand just isn’t there, and demand will not miraculously appear merely because of the arrival of the benefit exhaustion date.

http://economix.blogs.nytimes.com/2010/03/17/do-jobless-benefits-discourage-people-from-finding-jobs/

Where has this guy been for the past three and a half years? His theory is blown to pieces by the 5 million or so 99ers who still have not been able for find work.

I think that fact proves Professor Krugman and Lawrence Katz, Labor Economist at Harvard, are correct in their views on unemployment.

The writer is just plain CLUELESS! ....and I am leaving a comment to tell him that!

yeah this makes no sense. So, now all of the people who are 99ers went to work? This is what people believe?

Well, some believe that the Earth is only 6,000 years old and dinosaurs never existed (Ahem Sarah Palin) or that the president was actually born in Kenya but that doesn't make it true

What kills me is that none of these people want to listen to the facts. If there are 3 million jobs available for more than 15 million unemployed, how could we all find jobs? THERE ARE NOT ENOUGH JOBS. What makes them think we have no incentive to work? When they are confronted with that fact, it goes right over their heads.

I think a lot of people think we should just all work for $8 an hour. Even if there were enough $8 an hour jobs I really think that the employed are divorced from the concept of what $8 an hour really is.

I'm going to play devils advocate here and ALSO say, That yes..there IS A JOB DEFICIT and the numbers DO NOT add up. But with that said. Who REALLY wants to go back to WORK for the very LOWLIFE corporate business scum? Enslaved, mistreated, wages cut further, age discrimination and NO benefits. Put our hands INTO the very PROFIT seeking slime that BUILT then CORRUPTED the very system that WE all have been brainwashed into believing that it's the GOLDEN rule.The very nature of this corrupted capitalism were the workers are NOW treated very poorly and have no voice. Is that what we have come to now and HAVE to accept just to have a stinking job? IMHO having a job now in this country is nothing MORE than disguised SLAVERY. And they have made it to where WE have NO CHOICE of a choice for a job. My 2 cents.

The same newspaper, The New York Times, did an article a little over two weeks ago regarding the real number of 99ers. It was somewhere around 5 million. That fact alone discredits his whole theory about unemployment benefits hindering job searches.

If this writer's theory held water, I would have been employed on March 27, 2010. Here it is 14 months later and I still don't have a job. He claims Krugman and Katz have nothing to base their assumptions on. He is dead wrong and there are 5 million other people like me who can prove that Professor Krugman and Lawrence Katz are spot on with their stances on unemployment and today's economy.

lendmeflight2 wrote:I think a lot of people think we should just all work for $8 an hour. Even if there were enough $8 an hour jobs I really think that the employed are divorced from the concept of what $8 an hour really is.

There is no way in hell that a single person could live on a job paying $8 an hour unless you were living in a tent city or a homeless shelter. I would love to have a person who thinks we can figure out a budget in order for us to keep a roof over our head, utilities, food and other essential life services. It just is not possible.

DesperateInRI wrote:

lendmeflight2 wrote:I think a lot of people think we should just all work for $8 an hour. Even if there were enough $8 an hour jobs I really think that the employed are divorced from the concept of what $8 an hour really is.

There is no way in hell that a single person could live on a job paying $8 an hour unless you were living in a tent city or a homeless shelter. I would love to have a person who thinks we can figure out a budget in order for us to keep a roof over our head, utilities, food and other essential life services. It just is not possible.

Thats because we have very evil and selfish people in this country, sitting comfy at home with their job and lives still intact. Those that have THROW stones at those who do not, this seems to be the NEW America.

I hear that everyday. "These people should just take $8 an hour because that's what's available", they say or "why can't you move back in with your family and get two jobs"? Two Jobs? I can't find one job, how can I find two?

I also realized something today that I never did before. Someone I know that is against unemployment benefits told is hoping she gets fired from her job because she thought she had a knew one lined up.

She said "I bet I wouldn't even be able to get unemployment benefits if I got fired".

I told her she would because she has worked all year. This seems to me to indicate that she has the welfare mentality on unemployment benefits.

Everyone I know that is a republican and against social programs tells me that they were poor once, "my dad was in the army" is a common one, and we were denied welfare.
Therefore these people against welfare because it is only for some people, meaning black and brown people I guess, and they get special treatment.

So this person that I am talking about seems to assume that all of us are getting special treatment they "they" couldn't get. Of course, in reality, unemployment insurance is for everyone.

I realize people in the army don't make a lot of money but I think these people can sometimes be really disconnected from what someone in our position or someone below poverty level actually goes through.

I wouldnt mind an $8/hr hour job. If I could find one. I have been applying to everything. Even corner stores. People who are spreading these false assumptions need to get a life. And I hope they go through the same thing we went through. I really really do. Before I would never wish anything like this on anyone, but now I know how this world operates. So yeah, I hope they lose everything and then run out of benefits and have to beg just like I did.

I said it before and it needs repeating. The very people you speak of could not live two weeks they way we have had to. Some of them speak from fear, most from ignorance. Unfortunately, you have to let them. Anyone who is remotely intelligent and informed knows what's up. Long before I became unemployed and a 99er I did make it my business to know about Unemployment Insurance, Medicare, Social Security, Welfare, Medicaid. I don't see how anyone could not investigate what will be yours eventually. How can you vote for anyone if you don't know where they stand on issues and what the issues are. Of course there are people who will try to beat the system, there always have been, long before this "recession" in 2008. There are people who work and beat the system everyday. We have all worked with them and probably for them. Millions of unemployed people are not trying to beat the system, there is no system to beat. In this area, even $8/hr jobs are non-existent, not that you could live on them, but they aren't there. We don't even have to get into the age, benefits, fulltime/parttime thing, they just don't exist. At 56 I never thought I'd be cleaning houses, babysitting and cutting lawns like I did when I was 12-13 years old. I do it because I have to. I have learned alot about people and about myself. One thing I have learned is that you can't sell yourself in an email cover letter and an online application, you are one of many. I don't think anyone who only accepts online applications and resumes is seriously looking and I would rather clean houses, babysit and cut lawns for someone who really appreciates it than take 33 years of experience, work ethic and intelligence and work for someone who is filling a chair and wants to do it on the cheap because they know they can. No one can live on $8 an hour, but that's exactly what they want us to do. But now you see it everywhere, people are pushing back in a big way, we have to. It's really foolish for them to think we can have a recovery without jobs, good jobs. You can't buy houses and cars or pay bills on $8/hr. What will they do when it all comes to a grinding halt again. Do you think they will learn? Banks are already sitting on massive housing inventories in every state, retailers are reporting weak sales in same store comparisons and prices continue to rise. Some people say they want it to be a two class system, the haves and the have nots, but what good is having if everything around you collapses?

I took a crap paying job when I was a 99er. However I only got it because my mom works there. Had I applied on my own I never would of got it. Even ony interview my now boss was asking why I'd take this job. Had I not had an "in" I never would of been considered. All thatsaid im glad I have it and it's a foot in the door. To those with mo connections it's impossible.

Frankly, I am beyond caring. I have gone 4 weeks with no income at all and I am getting very animalistic in my thinking. My reptile brain is coming to the forefront so to speak. I lose my house in two weeks if EB isn't restored. This is the same spot I was in this time last month except now I owe people for rent money I borrowed and can't pay back.
As time goes on I don't know how interested I am in trying to do a good job for the man anymore. I have reduced my cost of living and I am really looking for something basic, low paying, and with little responsibility. It's a bad attitude but it's the only one I got right now.

$8/hr jobs are non-existent is bad, but try to get 40hrs a week on an $8 and hour gig. Those don't exist. But all these fools that say "Take a $8 an hour" job have NO CLUE that you'll get 10 to 20 hrs, if your lucky. Lots of ignorant fools in the god-forsaken nation throwing stones just because they CAN throw stones.

All this will catch up with them eventually if things are not restored to normal. Ppl think a whole segment of population will go broke and everyone else wont feel the consequences somehow. May it be a increase in crime or whatever, they will feel it at some point. We in turn will be joining the ranks of a third world just like russia did.

Unless these stupid politicians get their act together. They are so set in controlling peoples lives instead of making this country livable for everyone and ensuring individual freedom.

Seen on WXII this morning that the impasse is long term so says republicans. Perdue has not spoken since she vetoed the bill. It sounds like the children are sticking their tongues out and crossing their arms and seeing who can do nothing the longest so both of the parties.

'People don't know, what they don't know' is all I can say!

I thought I had accepted DH inability to return to employment and helped him 'accept' forced retirement over the last two years. THEN I tried to find just a little p/t $8.00 job! LOL Yikes!

It distresses me personally that I cannot contribute to my household or be engaged in employment on ANY LEVEL to maintain self-esteem and energy. However, it is even more distressing that our great nation has been REDUCED to it's present state of affairs and all the while our govt 'leaders' seem to be whistling past the graveyard and crossing their fingers is as much action as they've shown!

I think it's pretty sad that many on the right are constantly saying this. Clearly, they just don't understand the situation. Nobody in his/her right mind would rather collect unemployment than have a job. Are you kidding me? That's absurd. For me, this is a real embarrassment. Half of my friends/relatives don't even know that I'm unemployed. I go out every day, usually to a public library or coffee shop where there's wifi, and apply for jobs constantly. I want a job, not a handout. And I can't afford health insurance for myself and my family without a job. Unemployment insurance doesn't provide health coverage.....a job does!

Some of these people really need to get a clue.

The people that say this should just try sitting at home for months on end with little money, no food, worrying about what is going to happen. After everything in the house is cleaned, reorganized and there is nothing to do but worry, they would see it is not a vacation and you'd rather work. You'd rather have somewhere to go everyday, a reason to get out of bed, a decent paycheck and a feeling that you are contributing to society, instead of a feeling of wasting away.

I am starting to think they are saying this just to be cruel. They MUST know it is not our fault and that we wouldn't prefer to lose everything over having a job. My husbands unemployment checks were less than half of what he was getting per week working. So ya, he would much rather be working than collecting half of what he was getting. He hasn't been getting any benefits since late august. People have no choice. NO ONE chooses to be penniless, homeless, and jobless.

They see the facts, there aren't enough jobs. So why the false comments? It has been going on long enough and there is enough proof for them to know we didn't choose this. They are cruel and unfeeling. I can however foresee some of the right coming around to their right mind when it counts. I feel some of them know they could lose votes in the elections if they don't help. In fact I'm banking on it.

I honestly think they want to regain the white house at all costs and they on a blackened earth battle plan to get there. They are willing to burn everything to the ground to get a republican in the white house. This plan won't work. There are not enough of these ultra conservative Americans to allow it to work.

Benefits encourage looking for a job and seeking a job aggressively. If one runs out of benefits and must settle into desperation and acceptance of "this is the way life is". Then they give up and feel it is hopeless. So I would encourage benefits at least for the 14 weeks of 589... It will encourage those of us who seem hopeless and broke.. It will get us into the mode(though temporarily) of positive and refreshed with a livelyhood of income and the fight to continue to search for a job because it once again will feel good to have some income. And no one wants to be out of income!!!

I don't get unemployment benefits and can't find a job. Maybe they can give me unemployment, then take them so I can get a job when they run out, if this works, then I should be good to go. What a bunch of crap!!! THERE ARE NO JOBS YOU bad people!!!

Why did the word bad person in my post changed on its own???? to bad people I didn't type that or have I lost my mind??

Ok something is going on here it did it again. I'm outta here if someone if autoediting my post to say things I didn't say. I typed ID*** not bad person.