An article by Gary Burtless of the Brookings Institution noted, "From the perspective of workers, the U.S. unemployment insurance system is one of the least generous in the industrialized world. . . . The distinctive feature of the U.S. system is that benefits do not last very long."

What are the costs and benefits to the U.S. economy of paying unemployment benefits for only a few months compared with paying benefits for a longer period, as Canada and countries in Western Europe do?

Explanation and Examples