![]() ![]() Alternatively, the high level of involuntary part-time work may reflect structural changes in the labor market that have caused employers to shift away from full-time workers on a more permanent basis (Yellen 2014 provides a concise summary of these alternatives).ĭistinguishing between cyclical and structural factors is difficult using conventional aggregate measures of part-time work and other labor market indicators. From this perspective, involuntary part-time employment represents idle labor resources, or labor market slack, that is relevant for assessing how close the economy is to the Federal Reserve’s maximum employment goal. ![]() One interpretation is that this is a cyclical phenomenon associated with general weakness in the labor market. The prevalence of such involuntary part-time work has remained unusually high in the aftermath of the Great Recession. People who work part time but would prefer to work full time make up a small but important portion of the labor force. This suggests that involuntary part-time work may remain significantly above its pre-recession level as the labor market continues to recover. However, structural factors such as changes in industry composition, population demographics, and labor costs have also contributed. Analysis across states and over time indicates that a substantial part of the increase is related to the business cycle. This may reflect more labor market slack than is captured by the unemployment rate alone. This item may be available elsewhere in EconPapers: Search for items with the same title.The incidence of involuntary part-time work surged during the Great Recession and has stayed unusually high during the recovery. Working Paper: Do Extended Unemployment Benefits Lengthen Unemployment Spells? Evidence from Recent Cycles in the U.S. Journal Article: Do Extended Unemployment Benefits Lengthen Unemployment Spells?: Evidence from Recent Cycles in the U.S. Labor Market," Journal of Human Resources, vol 50(4), pages 873-909. "Do Extended Unemployment Benefits Lengthen Unemployment Spells?: Evidence from Recent Cycles in the U.S. ![]() References: View references in EconPapers View complete reference list from CitEcĬitations: View citations in EconPapers (90) Track citations by RSS feed New Economics Papers: this item is included in nep-ias and nep-lab JEL-codes: J64 J65 (search for similar items in EconPapers) Although the overall effect of UI extensions on exit from unemployment is small, it implies a substantial effect of extended benefits on the steady-state share of unemployment in the cross-section that is long-term. The effects on exits and duration are primarily due to a reduction in exits from the labor force rather than to a decrease in exits to employment (the job finding rate). In both periods, we find a small but statistically significant reduction in the unemployment exit rate and a small increase in the expected duration of unemployment. We use matched monthly data from the CPS to exploit variation in the timing and size of the UI benefit extensions across states to estimate the overall impact of these extensions on individual exit from unemployment, and we compare the estimated impact with that for the prior extension of benefits during the much milder downturn in the early 2000s. In response to the Great Recession, the availability of unemployment insurance (UI) benefits was extended to an unprecedented 99 weeks in many U.S. No 19048, NBER Working Papers from National Bureau of Economic Research, Inc Do Extended Unemployment Benefits Lengthen Unemployment Spells? Evidence from Recent Cycles in the U.S.
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