Economic effects of activation

American programmes for income security emerging from the Great Depression had as core themes economic self-sufficiency and the maintenance of individual dignity. During the course of the twentieth century, rules evolved for cash public assistance to the needy, temporary income support for the jobless, hiring incentives for employers, and employment incentives for workers. 

Some scholars have estimated that the presence of UI has a dampening effect on the aggregate economy. Perhaps the national unemployment rate could be a full percentage point lower in the absence of the UI system. However, others have estimated that the added time afforded by UI promotes productive job search, and 

Taken together, the full set of public programmes to support income security have improved the standard of living for Americans, and have done so in ways compatible with flexible and competitive labour markets. 

Loprest P (2004) Leaving welfare Employment and well being of families that left welfare in the post entitlement era. W.E. Upjohn Institute for Employment Research, Kalamazoo, Michigan 

American Public Human Services Association (1998) Welfare check to paycheck State incentives for businesses to hire welfare clients. APHSA, Washington, DC Bandes S (1990) The negative constitution A critique. Michigan Law Review 88(8) 2271-2347 

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