I’ve argued time and time again that incentives matter. And why people think this wouldn’t apply to the incentive not to work is beyond me. But now there is evidence of just how strong that incentive is: via Dan Mitchell
The extension of UI [unemployment insurance] is found to have a positive and significant impact on the national unemployment rate…. The UI benefit extensions that have occurred between the summer of 2008 and the end of 2010 are estimated to have had a cumulative effect of raising the unemployment rate by .77 to 1.54 percentage points.
That seems pretty significant to me.