The "unemployment benefits encourage people not to work" argument is a major crock, but it really just registered this morning when I ran across this post from Karoli at C&L, commenting on this piece by Robert Barro. From Barro:
The unemployment-insurance program involves a balance between compassion—providing for persons temporarily without work—and efficiency. The loss in efficiency results partly because the program subsidizes unemployment, causing insufficient job-search, job-acceptance and levels of employment. A further inefficiency concerns the distortions from the increases in taxes required to pay for the program.
Aside from the fact that it's bullshit on its face ("loss of efficiency"? Are you serious?), it's also fact-free.
I suspect most states are like Illinois, where you are required to present proof that you have been looking for work in order to continue to receive benefits.
Karoli's piece is a little more vitriolic than necessary -- or maybe not. This guy sounds like a real cheap date, if you know what I mean.
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