The EUC08 Program in Theoretical and Historical Perspective
U.S. Department of Labor
Office of the Assistant Secretary for Administration and Management
- Conceptual frameworks for optimal unemployment insurance (UI) offer valuable insights about the design of programs that provide additional weeks of benefits to long-term unemployed workers.
- In contrast to other emergency programs, for which activation tended to occur late in cyclical downturns, EUC08 benefits were paid for almost one year before the recessionary trough in the second quarter of 2009.
- The EUC08 program was considerably larger than any of its predecessor programs, as measured by the number of first payments made and real dollars of benefits paid.
- Prior research has shown that additional weeks of benefits may affect the length of recipients’ unemployment spells, though there is considerable disagreement about the precise size of such effects and whether they vary over the business cycle.