Question

There has been considerable debate as to the appropriate level of Employment Insurance benefits paid out to unemployed workers. What does the one-sided search model of labour market search tell us about the effects of increase in employment insurance benefits and their effects on the economy. (Show your work graphically)

Answer 1

Employment Insurance benefits -

Employment Insurance benfits provides regular benefits to an individuals who lose their jobs with no fault of their own for example due to shortage of work, seasonal work but they are available for work and able to work but they can't find a job. The Employment Insurance benefit program provides temporary income support to unemployed workers while they look for a job

. In Canada they provide The Employment Insurance benefit to their unemployed workers or to a person who are unemployed due to specific life events (illness; pregnancy; caring for a newborn or newly adopted child, a critically ill or injured person, or a family member who is seriously ill with a significant risk of death). The Canada Employment Insurance Commission (CEIC) plays a leadership role in overseeing Employment Insurance benefits program.