Unemployment insurance should be more generous during economic downturns
The article analyzes the best way to provide unemployment benefits during different economic times. It looks at how job shortages in recessions affect the effectiveness of job-search efforts. The study finds that during recessions, job-search efforts don't reduce overall unemployment much because there are few jobs available. Also, when people search for jobs, they can actually make it harder for others to find work. The research suggests that the amount of unemployment benefits should change depending on whether the economy is doing well or poorly.