Higher unemployment benefits lead to longer job search and lower wages.
The study looked at how unemployment benefits affect people's chances of finding a job and their wages afterwards. By studying data from Finland, the researchers found that higher benefits led to longer periods of full-time unemployment and lower chances of finding a job. People who received more benefits also tended to earn less in the two years after losing their job. Overall, higher benefits seemed to have a negative impact on both employment and earnings after unemployment.