Date of Award

Spring 6-13-2025

Document Type

Masters Thesis

Degree Name

M.A. in Economics

Organizational Unit

College of Arts Humanities and Social Sciences, Economics

First Advisor

Markus Schneider

Second Advisor

Juan Carlos Lopez

Third Advisor

Chiara Piovani

Fourth Advisor

Christina Kreps

Copyright Statement / License for Reuse

All Rights Reserved
All Rights Reserved.

Keywords

Behavioral economics, Unemployment, Unemployment benefits, Financial stress, Job insecurity, Social welfare policy

Abstract

This thesis investigates how unemployment insurance (UI) affects individuals during and after unemployment. Drawing on historical evidence from recent recessions in the United States, publicly available data, behavioral insights, and mathematical modeling, it argues that the benefits of extending UI outweigh the potential costs. The analysis incorporates a wide range of sources, including empirical economic studies using regression models and psychology and business research that highlight behavioral responses to financial stress and job insecurity. By combining quantitative data with behavioral context, the thesis offers a more comprehensive understanding of how extended UI influences job search decisions, wage outcomes, and overall labor market efficiency. It also addresses common misconceptions surrounding UI, particularly the belief that more generous benefits discourage work, by incorporating theoretical models such as the labor-discipline framework. In doing so, the thesis presents a persuasive case for why UI should be seen not only as a safety net but also as a mechanism for improving employment quality and economic resilience. Through this interdisciplinary approach, it contributes to ongoing debates about the role of social welfare policy in shaping modern labor markets.

Copyright Date

6-2025

Publication Statement

Copyright is held by the author. User is responsible for all copyright compliance.

Rights Holder

Alyssa Roche

Provenance

Received from ProQuest

File Format

application/pdf

Language

English (eng)

Extent

93 pgs

File Size

1 MB

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