This article reports on the sensitivitv of federal spending to unemployment. The
based on a review of econometrie analyses made by others, finds that
several programs in addition to unemplovment benefits are sensitive to unemployment. Based on these studies, the article presents estimates of the overall
sensitivity of federal spending to unemplovment.
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References
1.
An individual state can give extended unemployment benefits when the insured unemployment rate for the state equals or exceeds, for a 13-week period, 120% of the average rate for the corresponding 13-week period in the preceding 2 calendar years and when such rate equals or exceeds 4%. Extended benefits are triggered for all states when the seasonally adjusted insured unemployment rate for the nation as a whole averages 4.5% or more for the 13 recent weeks.
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