5. Unemployment insurance and permanent job loss. Workers sometimes lose their jobs due to international trade. These jobs are permanently gone, and many displaced workers have difficulty finding a similar job. The jobs they can find in a few months tend to offer much lower wages than their old job. Consider the following two proposals to provide unemployment insurance for such workers. Explain your arguments for or against each policy. a) Workers displaced from industries identified as impacted by foreign trade receive extended unemployment benefits. They will receive unemployment benefits for an extra 26 weeks beyond the normal 26 weeks eligibility. b) These workers receive unemployment benefits up to 26 weeks. In addition, if they accept a job at a lower pay than their old job, they are guaranteed 50% of the difference in earnings as a wage supplement for two years. (The government pays the supplement to the worker.)
5. Unemployment insurance and permanent job loss. Workers sometimes lose their jobs due to international trade. These jobs are permanently gone, and many displaced workers have difficulty finding a similar job. The jobs they can find in a few months tend to offer much lower wages than their old job. Consider the following two proposals to provide unemployment insurance for such workers. Explain your arguments for or against each policy. a) Workers displaced from industries identified as impacted by foreign trade receive extended unemployment benefits. They will receive unemployment benefits for an extra 26 weeks beyond the normal 26 weeks eligibility. b) These workers receive unemployment benefits up to 26 weeks. In addition, if they accept a job at a lower pay than their old job, they are guaranteed 50% of the difference in earnings as a wage supplement for two years. (The government pays the supplement to the worker.)
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 4MC
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Transcribed Image Text:5. Unemployment insurance and permanent job loss. Workers sometimes lose their jobs due to
international trade. These jobs are permanently gone, and many displaced workers have difficulty finding
a similar job. The jobs they can find in a few months tend to offer much lower wages than their old job.
Consider the following two proposals to provide unemployment insurance for such workers. Explain your
arguments for or against each policy.
a) Workers displaced from industries identified as impacted by foreign trade receive extended
unemployment benefits. They will receive unemployment benefits for an extra 26 weeks beyond
the normal 26 weeks eligibility.
b) These workers receive unemployment benefits up to 26 weeks. In addition, if they accept a job
at a lower pay than their old job, they are guaranteed 50% of the difference in earnings as a wage
supplement for two years. (The government pays the supplement to the worker.)
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