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Start of the spell of unemployment

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Reference no: EM132004789

Consider the following two proposals to reform unemployment insurance. Briefly 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 labour income for 26 weeks.

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

Reference no: EM132004789

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