As long as we're sorta talking about unemployment, I thought this was
interesting. In the mid 80s, some dudes did a study on unemployment in Pittsburgh. They found that people were *ten times* more likely to get a job the week after their unemployment benefits dried up compared to any other week. Of course, this is obvious to anyone who stops and thinks about it, but it's always good to have some empirical evidence.
This is not to say that all unemployment benefits are bad or that the system in general is bad on net, but it does suggest that there is absolutely a balance to be had in regards to the duration of unemployment benefits. My 2 cents is that 1 month is too short and 1 year is too long. Beyond that, I'm not sure where the balance should be.
Anecdotally, I have a software engineer buddy who graduated with me who is currently on unemployment. I have a really difficult time finding qualified people to hire in his exact field, and he's spent the last year on unemployment (been extended twice so far). He paid ~120k to go to a top engineering school and had a job paying ~65k out of school. After being laid off, he decided to randomly move to another city and get his bartenders license, even though he's never worked in any kind of restaurant. Now he's decided to at least go back to school because his unemployment is running out. Perverse incentives do effect people.