The Federal Supplemental Benefits Program: An Appraisal of Emergency Extended Unemployment Insurance Benefits

Proposals to temporarily extend unemployment benefits have been considered during every recession since World War II.The Federal Supplemental Benefits (FSB) program of 1974 has so far been the largest and most costly of these programs.This analysis and evaluation of the FSB program addresses policy issues currently under discussion in regard to the rationale for and performance of such emergency ex tensions.In examining both the specific FSB program and the more general question of whether benefits should be extended dur ing recessions, the authors explore a number of approaches to estimating social benefits and costs.They recommend a cautious approach to emergency extension policies, sug gesting that such programs be considered only during especially severe recessions.Facts and observations presented in this study are the sole responsibility of the authors.Their viewpoints do not necessarily represent positions of the W.