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4. Consider two states A and B. Data on differences in UI programs across states show that State A has a much wider range in
4. Consider two states A and B. Data on differences in UI programs across states show that State A has a much wider range in the payroll tax rates paid by different experience-rated firms than does State B.
(a) Which states system subsidizes firms with high layoff rates to a greater degree? Explain.
(b) Which state is more likely to have a higher unemployment rate? Explain.
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