Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 16

In the U.S. during regular economic times, the maximum length of time a worker can collect unemployment insurance is 26 weeks. During recessions, however, Congress often increases the length of time in which workers can collect benefits. During the recent financial crisis, workers could collect benefits for up to 99 weeks in some states. Comment on the advantages and disadvantages of this system.