Question: The current UI program in the United States gives workers $X per day if they are unemployed but zero if they take a job for
The current UI program in the United States gives workers $X per day if they are unemployed but zero if they take a job for even 1 hour per day. Suppose that the law is changed so that UI beneficiaries can keep getting benefits of $X per day if they work 2 or fewer hours per day, but if they work more than 2 hours per day, their UI benefits end. Draw the old and new budget constraints (clearly labeled)
associated with the UI program, and analyze the work incentives of this proposed change.
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The old constraint is ABC below and the new one is BADEC The worki... View full answer
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