Government requirement to pay for unemployment insurance

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Reference no: EM131159444

Unemployment insurance is an employer paid government program that provides laid-off workers with benefits worth some proportion of their previous wages (Texas-25%) for some limited amount of time (Texas-26 weeks).

Applying the basic concepts of Microeconomics (Opportunity Cost, decisions made at the margin, agents respond to incentives).

a) Discuss the individuals response to the presence of government provided unemployment insurance. i.e. will the worker take more or less time to find new employment

b) Discuss firms response to government requirement to pay for unemployment insurance

c) given your Microeconomic analysis do you expect the presence of our system of unemployment insurance to raise or lower the rate of unemployment

Reference no: EM131159444

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