The failure to extend the $600 weekly unemployment bonus payment that expired last month would lead to a 44% decline in local spending if it is not renewed, according to a study circulated Monday by the National Bureau of Economic Research.

The paper, which has not yet undergone peer review, also found that reducing the payment to $400 would lower spending by 12%, while cutting it to $200 would shrink spending by 28%.

Recommended Stories

Jobless claims fall to 963,000, ending 20-week streak of claims above a million

Democrats propose tying boosted unemployment benefits to state unemployment rates

Deal on virus aid and federal spending could drag into weekend