Question

What is characteristic of the relationship between unemployment insurance and job-search effort?

	Most economists are sceptical of the value of unemployment insurance because they believe that it results in a poorer match between workers and jobs.
	A typical unemployed worker will reduce his or her job-search effort once unemployment benefits are exhausted.
	A typical unemployed worker near the end of the time in which he or she can receive benefits increases job-search efforts.
	Unemployment insurance raises structural unemployment because it reduces the job search of the unemployed.

Answer 1

Unemployment insurence benfit to job search efforts. In the United States, workers who lose their jobs are generally entitled to unemployment insurance benefits for up to six months. The amount of these benefits varies from state to state, but on average, people pay 35% of their previous income until they find a new job or expire.

Unemployment insurance benefit centers discuss the degree of decency of these benefits. The problem is that more generous benefits reduce a person's motivation to look for a new job, longer than they remain unemployed. Government evidence to extend UI eligibility period