Myths about unemployment benefits denied

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A study at Yale University has denied the notion that the payment of unemployment benefits in the amount of 600 dollars a week is bad for the economy. This is stated in the material Bloomberg.

Most often criticism of such large payments are in the Republican party. According to opponents of the decision, it stimulates the growth of unemployment. However, the experts recognized the statement is a myth, not proven facts.

It turned out that the employees who received the increased payments, return to work with the same intensity as everyone else. Such dynamics was observed in the beginning of the program, and later, that is, the habit is not formed.

For the study, the authors examined data company Homebase, which sells software for small businesses. Including use of small businesses in the food industry, where relatively low wages and since the beginning of the economic crisis layoffs.

In this sector it was possible to assume that people will like to obtain comparable revenue and nothing to do, but the reality went against expectations.

Scientists have suggested that employees don’t believe in the stability of the payments and consider work a more reliable source of income. In addition, they fear that they will be deprived of benefits if they consider that they have refused a suitable offer.

For the U.S., the study is relevant because the senators want from 1 August to cut unemployment benefits to $ 200 a week. Moreover, as the argument suggests that beneficiaries cease to seek work, thereby provoking the worsening of the economic crisis.

In may, Finland summarized the results of the biennial experiment on the introduction of unconditional basic income and found it to be ineffective. In 2017-2018, two thousand unemployed aged 25 to 58 years received 560 euros every month. It was assumed that such a sum will encourage them to look for work, but it turned out that no significant difference with the control group, which did not have such income does not arise. At the same time, the recipients of these funds significantly increased the level of happiness.

Video, photo All from Russia.

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