Staying on the dole can be good for you

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I have to confess, I always wanted to get unemployment benefits just to see what it's like. There has always been a stigma to those on the dole, including that it breeds laziness. But that may not be the case:

"New research from Raj Chetty, a young Berkeley economist, suggests that moral hazard may not be why more generous benefits seem to lead to more unemployment. Chetty realized that unemployment benefits do not merely pay people to stay out of work; they also protect them from having to rush into an unsuitable job. It is nothing to celebrate if unemployed engineers cannot afford to spend three months finding a job for which they are qualified but are forced to work as real estate agents to put food on the table. A longer gap between jobs is sometimes preferable"

 

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Economic Alert is a daily blog on business and the economy in the San Gabriel Valley and beyond, featuring updates and observations from the staff of the San Gabriel Valley Newspaper Group. SGVN includes the San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.

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Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
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Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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About this Entry

This page contains a single entry by Edward Barrera published on December 16, 2008 1:51 PM.

Stupidity, losses and then the bezzle was the previous entry in this blog.

Bad economy protection: sex, money and a job is the next entry in this blog.

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SanGabe.biz is the San Gabriel Valley Newspaper Group's online resource for local business development. Get info on tax law, accounting, legal forms, marketing, sales and more.
The San Gabriel Valley Small Business Development Center offers classes, counseling and consulting for entrepreneurs and small business owners. The SBDC is a partnership between Mt. San Antonio College and the U.S. Small Business Administration.
The San Gabriel Valley Economic Partnership is a nonprofit corporation dedicated to improving the valley's economy.

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