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The Latest from BPC’s Economic Policy Project
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This monthly newsletter highlights what’s new from BPC on economic policy. Keep scrolling for recent work on unemployment insurance reforms, an update to BPC’s deficit tracker, and media highlights. If you have any questions or want more info about BPC’s economic policy work, email [email protected] .
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With supplemental weekly unemployment insurance benefits at the center of COVID-relief negotiations, Ben Gitis, Mariette Aborn, and Shai Akabas analyze data from the University of Chicago’s Unemployment Insurance Calculator to present wage replacement rates for sample workers at several different benefit levels. The findings support BPC’s previous recommendation to temporarily continue the weekly federal supplement at $400, which would provide workers with substantial financial assistance and begin to rebalance incentives toward work.
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In this blog, Ben Gitis analyzes new evidence from a BPC-Morning Consult survey that suggests racial minorities are underrepresented among current unemployment insurance recipients. Specifically, Black and Hispanic workers appear to be significantly less likely to be approved for benefits than white workers. With the next round of pandemic relief on the table, Congress should take a close look at these potential racial disparities.
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The economic fallout from COVID-19 has demonstrated states’ inability to administer benefits effectively. In this blog, Kenneth Megan explains how UI is financed and suggests how the system might be leveraged to ensure that UI effectively delivers the support that displaced workers deserve.
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Ben Gitis and Abby McCloskey draw key takeaways from a BPC-Morning Consult survey of 1,500 people receiving unemployment benefits during the COVID-19 pandemic. The survey suggests that one-quarter of UI recipients (roughly 8 million workers) primarily spend their time caregiving and many workers, particularly parents, lack options for balancing these responsibilities and workforce participation.
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