What is the indirect incentive in the unemployment insurance program?
A) Workers get paid when they are laid off.
B) Workers face an incentive to find a new job as quickly as possible.
C) Workers have a reduced incentive to find a new job until the insurance runs out.
D) Workers are paid all of their wages by the unemployment insurance program.
E) Workers on unemployment insurance are given training opportunities.

Question

Quizplus · Accepted Answer

The indirect incentive in the unemployment insurance program is that workers have a reduced incentive to find a new job until the insurance runs out. This is because they are receiving a regular payment from the program, which may be lower than their previous salary, but still provides a source of income. This reduces the urgency for them to find a new job immediately.

What Is the Indirect Incentive in the Unemployment Insurance Program