Research / BFI Working PaperAug 25, 2023

Spending and Job-Finding Impacts of Expanded Unemployment Benefits: Evidence from Administrative Micro Data

Peter Ganong, Fiona Greig, Pascal Noel, Daniel M. Sullivan, Joseph S. Vavra

We show that the largest increase in unemployment benefits in U.S. history had large spending impacts and small job-finding impacts. This finding has three implications. First, increased benefits were important for explaining aggregate spending dynamics—but not employment dynamics—during the pandemic. Second, benefit expansions allow us to study the MPC of normally low liquidity households in a high-liquidity state. These households still have high MPCs. This suggests a role for permanent behavioral characteristics, rather than just current liquidity, in driving spending behavior. Third, the mechanisms driving our results imply that temporary benefit supplements are a promising countercyclical tool.

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BFI Working Paper Jul 21, 2020

Initial Impacts of the Pandemic on Consumer Behavior: Evidence from Linked Income, Spending, and Savings Data

Natalie Cox, Peter Ganong, Pascal Noel, Joseph S. Vavra, Arlene Wong, Diana Farrell, Fiona Greig
Topics:  COVID-19
BFI Working Paper Aug 23, 2018

Liquidity vs. Wealth in Household Debt Obligations: Evidence from Housing Policy in the Great Recession

Peter Ganong, Pascal Noel
Topics:  Fiscal Studies, Financial Markets, Employment & Wages, Economic Mobility & Poverty, Monetary Policy, COVID-19
BFI Working Paper Jan 21, 2022

Should We Have Automatic Triggers for Unemployment Benefit Duration and How Costly Would They Be?

Gabriel Chodorow-Reich, Peter Ganong, Jonathan Gruber
Topics:  Economic Mobility & Poverty