Extended unemployment benefits may have increased US unemployment rate by 1%.
The study looked at why the US had high unemployment rates after the Great Recession. They used a model to see how unemployment benefits and job matching efficiency affect unemployment. They found that unemployment benefits can increase the overall unemployment rate during economic downturns. On the other hand, changes in job matching efficiency didn't have a big impact on unemployment during the same period, but they did slow down the recovery after 2012.