Giving people income through unemployment insurance:

Question

Quizplus · Accepted Answer

Unemployment insurance provides income to people who have lost their jobs, which can help them to prolong their unemployment until they find a better match. It can also reduce frictional unemployment because people find good matches and change jobs less often. However, it can also create two opposite effects on unemployment. For example, it can encourage people to stay unemployed for longer periods of time, which can increase the unemployment rate. However, it can also help to reduce the unemployment rate by providing income to people who are looking for work.

Giving People Income Through Unemployment Insurance