At least 25 US states are ending their participation in the federal unemployment insurance program early. The states, most of which have Republican governors, argue that overly generous benefits are discouraging low-income workers from returning to their jobs, leading to labor shortages.There’s not much evidence that unemployment checks—versus low wages and lingering health concerns—are driving the labor mismatch. But the governors’ assertion is also built on another dubious assumption: that given a choice, the poor would simply refuse to work.It’s an argument with classist and racial undertones, and also lacks supporting evidence. In fact, a new economics paper suggests that work provides s
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