Problem
Optimal unemployment insurance: Consider the following two proposals to reform unemployment insurance. Explain the arguments for and against each reform.
(a) The insurance payment would be increased so that it replaced 100% of a worker's regular labor income for 26 weeks.
(b) Each worker would be paid a lump sum equal to 10 weeks of his or her labor income at the start of the spell of unemployment. There would then be no other payments.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.