Proposals to reform unemployment insurance

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Reference no: EM13889185

Consider the following two proposals to reform unemployment insurance. Explain the arguments for and against each reform.

(a) The insurance payment would be increased so that it replaced 100% of a worker's regular labor income for 26 weeks.

(b) Each worker would be paid a lump sum equal to 10 weeks of his or her labor income at the start of the spell of unemployment. There would then be no other payments.

Reference no: EM13889185

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