The unemployment insurance system may be desirable because unemployment insurance:

Question

Quizplus · Accepted Answer

Unemployment insurance provides a safety net for workers who have lost their jobs involuntarily. By providing a source of income during periods of unemployment, it enables workers to reject job offers that are unattractive in terms of wages or working conditions. This can lead to a higher level of job satisfaction and better matches between workers and jobs. However, if the unemployment benefits are too generous, they could reduce workers' incentives to actively search for a job, and potentially increase the rate of job finding. This is why the design of an unemployment insurance system must strike a balance between providing adequate support to workers and preserving their incentives to find a job quickly.

The Unemployment Insurance System May Be Desirable Because Unemployment Insurance