Question

In: Economics

what is the indirect incentive in the unemployment insurance program? A. workers are paid all of...

what is the indirect incentive in the unemployment insurance program?

A. workers are paid all of their wages by the unemployment insurance program

B. workers on unemployment insurance are given training opportunities

C. workers face an incentive to find a new job as quickly as possible

D workers have a reduced incentive to find a new job until the insurance runs out

E workers get paid when they are laid off

Solutions

Expert Solution

Answer: ( D)

Workers do not have the incentive to find out a new job as long as some amount is received from the insurance programs. This is an indirect incentive of the unemployment insurance program.


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