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: 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. If unemployment benefits are higher, it may enable lower income support / universal credit. Problems of increasing unemployment benefits
Unemployment Trap. If benefits are increased too much then there may be little incentive to get a job rather than stay on benefits. This is said to be a problem in Germany, where generous unemployment benefits encourage many to stay on benefits (known as voluntary unemployment)
Cost to taxpayer of paying for the benefits. However, the level of unemployment benefits is currently quite low relative to other benefits.