LO 5 Suppose your government reforms its unemployment insurance system. The duration of UI beneits received by

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LO 5 Suppose your government reforms its unemployment insurance system. The duration of UI beneits received by unemployed persons shortens from nine to six months. In addition, the government reduces the taxes on labor income but not those on UI beneits. Examine the efects of this decision on the reservation wage and longterm unemployment with the aid of the one-sided search model of unemployment.

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Macroeconomics

ISBN: 9781292215792

6th Global Edition

Authors: Stephen Williamson

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