Reducing unemployment Will cash bonuses speed the return to work of unemployed people? A

Chapter 4, Problem 58

(choose chapter or problem)

Get Unlimited Answers
QUESTION:

Reducing unemployment Will cash bonuses speed the return to work of unemployed people? A state department of labor notes that last year 68% of people who filed claims for unemployment insurance found a new job within 15 weeks. As an experiment, this year the state offers $500 to people filing unemployment claims if they find a job within 15 weeks. The percent who do so increases to 77%. What flaw in the design of this experiment makes it impossible to say whether the bonus really caused the increase? Explain.

Questions & Answers

QUESTION:

Reducing unemployment Will cash bonuses speed the return to work of unemployed people? A state department of labor notes that last year 68% of people who filed claims for unemployment insurance found a new job within 15 weeks. As an experiment, this year the state offers $500 to people filing unemployment claims if they find a job within 15 weeks. The percent who do so increases to 77%. What flaw in the design of this experiment makes it impossible to say whether the bonus really caused the increase? Explain.

ANSWER:

Step 1 of 2

It is given that 68% of people who filed claims for unemployment insurance found a new job within 15 weeks. This percent increases to 77% when the state offers $500 to people filing unemployment claims if they find a job within 15 weeks.

Add to cart


Study Tools You Might Need

Not The Solution You Need? Search for Your Answer Here:

×

Login

Login or Sign up for access to all of our study tools and educational content!

Forgot password?
Register Now

×

Register

Sign up for access to all content on our site!

Or login if you already have an account

×

Reset password

If you have an active account we’ll send you an e-mail for password recovery

Or login if you have your password back