Month: October 2016

A new study released by a team of economists including Arindrajit Dube, economics, reveals that the large extension of unemployment insurance (U.I.) benefits during the Great Recession had neither statistically significant nor economically meaningful effect on employment, positive or negative. During and after the Great Recession, the federal U.I. program was expanded significantly as unemployed workers became eligible to receive up to 99 weeks of U.I. payments, compared to the usual 26 weeks available before the crisis. While few would disagree that these benefits helped laid-off workers weather the hardship of job loss, some economists have theorized that the increased generosity of U.I. benefits might have reduced employment and slowed economic recovery. Some economists also say there is a possibility that providing funds to workers helped boost consumption and profits, bolstering employment. (Yahoo Finance, The Fiscal Times, 10/5/16; News Office release)

Arindrajit Dube, economics, writes a column where he says the tightening job market along with increases in the minimum wage adopted by states and some cities are pushing wages up. He also says the dropping poverty rate suggests that the U.S. job market is getting healthier. (New York Times, 9/29/16)

Robert N. Pollin, Distinguished Professor in economics and co-director of the Political Economy Research Institute, says Americans could learn how to succeed in the era of globalization by using Germany as an example. He says despite its high wages, Germany is “an export powerhouse. They achieved this success through aggressive industrial policy.” Pollin is commenting in an analysis of the presidential campaign and the issues that are resonating with voters. (The Nation, 9/30/16)

 M.V. Lee Badgett, economics, says she recently ran an economic model that showed that raising the minimum wage to $15 per hour would reduce poverty by one third for male same-sex couples and by nearly half for female same-sex couples. She says, “As a policy strategy, it would make a big difference.” (NBC News, 10/3/16)