Public policy intended to make layoffs less painful actually made layoffs cheaper and more common.

by Casey B. Mulligan

Why has the labor market contracted so much and why does it remain depressed? Major subsidies and regulations intended to help the poor and unemployed were changed in more than a dozen ways—and although these policies were advertised as employment-expanding, the fact is that they reduced incentives for people to work and for businesses to hire. [Read more…]