Question

How would unemployment benefits affect the labor market and why?

How would unemployment benefits affect the labor market and why?

Homework Answers

Answer #1

Unemployment benefits are provided to unemployed workers who have no job for a certain period of time. If there are no unemployment benefits then these workers will continue to look for a job and hence some of them will find it sooner. Due to the presence of unemployment benefits some of the unemployed workers decide not to go for a job and this reduces the quantity of labour supplied at every wage rate. Therefore the presence of unemployment benefits reduces the labour supply at each wage rate which shifts labor supply curve left. This increases the market wage rate and reduces the size of the employment while increasing the size of unemployment

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How would the following factors affect the supply of health personnel in labor market? 1- The...
How would the following factors affect the supply of health personnel in labor market? 1- The number of new graduates increased. 2- The wage rate of health personnel decreased.
How would the following factors affect the demand for health personnel in labor market? MY program...
How would the following factors affect the demand for health personnel in labor market? MY program is Quitting smoking 1- The number of well-trained staff members increased. 2- An increase in the availability of certain technologies.
Explain the “JOB SEARCH THEORY” and its relevance to unemployment. How would an increase in Employment...
Explain the “JOB SEARCH THEORY” and its relevance to unemployment. How would an increase in Employment Insurance[1] benefits affect the Job Search Theory
One consequence of wage rigidity is: lower rates of unemployment less labor market volatility labor market...
One consequence of wage rigidity is: lower rates of unemployment less labor market volatility labor market stability a lower unemployment rate None of these answers are correct.
Consider how unemployment would affect the Solow growth model. Suppose that output is produced according to...
Consider how unemployment would affect the Solow growth model. Suppose that output is produced according to the production function Y = Kα [(1 – u)L]1-α where K is capital, L is the labor force, and u is the natural rate of unemployment. The national saving rate is s, the labor force grows at rate n, and capital depreciates at rate δ. a. Write a condition that describes the golden rule steady state of this economy. b. Express the golden rule...
Show using graphs how a negative shock to productivity would affect unemployment and inflation in our...
Show using graphs how a negative shock to productivity would affect unemployment and inflation in our three-equation model. Do you believe that negative shocks to productivity can exist? Explain.
What is unemployment insurance? Is an organization required to pay unemployment benefits to all dismissed employees?...
What is unemployment insurance? Is an organization required to pay unemployment benefits to all dismissed employees? Explain how you would go about minimizing your organization's unemployment insurance tax.
chapter 13 The aggregate labor market is​ complicated, and there are no simple answers to why...
chapter 13 The aggregate labor market is​ complicated, and there are no simple answers to why there is unemployment. A. True B. False
When the labor market is at full employment A.there is only cyclical unemployment in the economy....
When the labor market is at full employment A.there is only cyclical unemployment in the economy. B.there is only structural unemployment in the economy. C.the unemployment rate is 0%. D.there is no cyclical unemployment in the economy.
How do these events affect price level, output, and the unemployment rate? Will they go up...
How do these events affect price level, output, and the unemployment rate? Will they go up or down or stay the same in the short-run. A. Continues to open public lands for oil and gas drilling. B. Commodity prices are rising, and the labor market continues to tighten. C. China imposes tariffs on U.S. produced soybeans, wheat and corn. D. Business firm pessimism continues to grow as Congress fails to reach agreement on new tax policies that would increase business...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT