What are the consumption smoothing properties

Assignment Help Business Law and Ethics

Reference no: EM131192300

You are hired by the presidential administration to review the UI program, which currently replaces approximately 45% of a worker's wages for 26 weeks after she loses her job. Consider two alternative reforms of the current UI system.

The first is to experience-rate firms fully, so that the taxes firms pay are set exactly equal to the benefits their workers receive (benefits remain at 45% of wages).

The second is a system of individual full experience rating-the government would lend individuals 45% of their wages while unemployed, but they would have to pay this back when they get new jobs.

a. Contrast the effects of these alternative policies on unemployment durations and the likelihood of worker layoffs.

b. What are the consumption-smoothing properties of each alternative policy?

Reference no: EM131192300

Questions Cloud

How much is the per-unit tax on cigarettes : How much is the per-unit (pack) tax on cigarettes? What price do consumers pay after the tax? How much tax revenue is collected? What is the amount of deadweight loss after the tax is imposed on cigarettes?

Which states system subsidizes firms with high layoff rates : The state of Kentucky had a much wider range in the payroll tax rates paid by different experience-rated firms than did Oregon. Which state's system subsidizes firms with high layoff rates to a greater degree?

Draw an indifference curve for ibrahim : Draw an indifference curve for Ibrahim, showing where he will consume. Will the usual consumer equilibrium condition hold at her utility maximization point?

Difference between cultural and ethical relativism : Explain the difference between cultural relativism and ethical relativism. Do you think that the fact that people disagree about morals, or "right and wrong", shows that ethical relativism is true?

What are the consumption smoothing properties : Contrast the effects of these alternative policies on unemployment durations and the likelihood of worker layoffs.- What are the consumption-smoothing properties of each alternative policy?

Two-page report that compares static : Write a two-page report that compares static, dynamic, and interpretive methods for program compilation and execution. Your report should discuss the advantages and disadvantages of each method.

Will this deter companies from hiring illegal immigrants : What are the legal and ethical arguments in favor of continuing to allow illegal immigrants to be hired by businesses? What are the legal and ethical arguments against illegal immigration? Which side do you support? Why?

Why is there a difference in the premium : Matt is an employee at a large university, where he pays $120 per month in insurance premiums, and his employer pays $300 per month.- Why is there a difference in the premium?

Create a start schema model : Imagine that you are a senior data warehouse architect for LECAL Corporation. Your company has been contracted by the U.S. Department of Education to develop a data warehouse which will track student performance on a series of planned nationwide ..

User Account

All Pages