Abstract
Abstract This chapter discusses the goals of unemployment insurance (UI) programs and American and European experiences with unemployment and UI programs, particularly during the Great Recession and the COVID recession. It reviews the American and European literature on the impact of the details of UI programs, including benefit level, benefit duration, and monitoring of job search, on the length of benefit receipt and subsequent earnings. Based on experience during the Great Recession and the COVID recession and a review of the impact literature, the chapter considers the role of UI programs during both recessions and several possible reforms to such programs, particularly low-intensity activation programs (e.g., mandatory meetings to verify job search). The chapter concludes that the available evidence suggests that UI (and higher benefits) increases unemployment duration and that low-intensity activation programs—when rigorously enforced—have the potential to moderate lower unemployment.
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