Afternoon Must-Read: Mark Thoma on Salim Furth’s ‘What’s Causing the Increase in Long-Term Unemployment?’
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Economist’s View: ‘What’s Causing the Increase in Long-Term Unemployment?’: “Salim Furth, who ‘is senior policy analyst…
…in macroeconomics at the Heritage Foundation’s Center for Data Analysis’:
What’s Causing the Increase in Long-Term Unemployment?: Some economic indicators, including the short-term unemployment rate, have recovered to levels associated with ‘normal times.’ But long-term unemployment remains high…. Many economists, myself included, expected that the expiration of long-term unemployment benefits at the end of 2013 would sharply lower the long-term unemployment rate. Instead, the rate has continued its slow, steady decline…. Economists have not yet found convincing explanations…. The problem is worth studying.
They will have to find another social insurance program to blame… instead of, say, lack of demand (a policy failure) combined with the stigma attached to the long-term unemployed.”