The Economic Policy Institute, a Washington think tank, is also collaborating with other researchers to publish a paper on this kind of strategy, according to research director Josh Bivens.
Generally, the idea would be that once the unemployment rate starts to rise — to anywhere from 5% to 8%, for example — the generosity of unemployment benefits would automatically increase, along with the length of time people could collect those jobless checks.
To further strengthen the system, benefits should also be made available to include non-traditional gig workers, as well as those who are looking to enter the labor force, such as stay at home parents or recently graduated college students, Bivens said.
However, the political process could derail this expansion, according to Bivens.
Yet another obstacle is finding the money to upgrade states’ unemployment infrastructure, particularly with regard to technology, he said.
Ultimately, the challenge is to strike a balance between providing enough money for people when they are without work, but not so generous that they are discouraged from re-entering the labor force.
“I would argue in the U.S. we have erred way too much on the ‘keep it stingy’ part,” Bivens said. “We have a lot of room to make [unemployment pay] a lot more generous, and yet not stop people from looking for jobs.”