Monday, November 10, 2014

Working vs Collecting unemployment benefits

Different economists have different views about this. My opinion is that the more unemployment benefits and disability benefits you give to people, the more people will make a choice between working and actually collecting benefits. 

And say a family, a husband and wife, two children – if one of the couple loses the job, he or she will become eligible for benefits and she or he can then take care of the children and the household and garden and this and that and get the benefits. So for him to actually go back into the workforce is only an option if the salary he will get is very high. Otherwise, by going back into the labor force he loses all the benefits, has to hire someone to look after the children or the house and so forth, so it may be actually a benefit for him not to work.