Title: Impact of increasing the rate unemployment benefits - Economics Help
Headings: Impact of increasing the rate unemployment benefits
Impact of increasing the rate unemployment benefits
Benefits of increasing unemployment benefits
Problems of increasing unemployment benefits
Statistics
Cost of unemployment benefits
Unemployment benefit spending compared to social security spending.
Fraudulent Unemployment benefit claims

Content: This is also a benefit for society. For example, if someone leaves university, with a degree in astrophysics, we don’t want them working in McDonalds because unemployment benefits are too low to support their job search on leaving university. Basically, frictional unemployment is not a bad thing; sometimes it takes time to find the right job. Low unemployment benefits could fuel social unrest and encourage the unemployed to resort to crime to supplement their income. Unemployment is often associated with a feeling of social alienation leading to riots such as Brixton 1981 and Paris in 2006. If unemployment benefits are low, society may have to spend on other benefits such as housing benefit and child benefit to keep the children of the unemployed out of poverty. Encourage higher wages. Higher unemployment benefits may encourage firms to offer higher wages to encourage people to accept a job. Reduction in other income support related benefits.