This project studied how unemployment insurance (UI) affects labour force participation decision, job search intensity, job-finding outcomes, and macroeconomic variables. We empirically documented that more generous UI policies tend to reduce the labour force exit rate and increase the labour force participation rate. Additionally, we also documented that the job-finding rates of unemployed workers are higher than those of the out-of-labour-force workers. Therefore, generous UI policies have the potential to boost the overall job-finding rates and, in effect, economic outcomes such as output and productivity. To investigate this further, we develop and estimate a general-equilibrium model using the simulated method of moments. We are currently in the estimation process which is computationally demanding. Once this process is done, we will achieve a set of parameters that best represent the U.S. economy (on which our data is based) to later inform optimal UI policy. A working paper has been presented internationally and will be submitted to a high-impact journal.