(Ames, IA) — An Iowa State University economist says the state’s move to end the extra 300 dollars a week in federal unemployment payments is an experiment of sorts. Economist Peter Orazem says it is a chance to see the extent to which those unemployment benefits actually matter in whether people are interested in accepting employment. Governor Kim Reynolds and other Republicans have argued the 300 dollar federal bonus — on top of the regular state unemployment benefits — has discouraged people from returning to work. Orazem says there was a relatively modest change in labor supply behavior when the federal benefits dropped from 600 to 300 dollars — but that was in the middle of the surge in pandemic cases around the United States.
Learfield Wire Services
