The paper "Microeconomic Policy Evaluation" is a great example of a report on macro and microeconomics. Unemployment benefits occur as the temporary income that is given to the eligible parties. The eligibility for receiving the benefits is dependent on different aspects from different countries. Mainly it is given as income to individuals who are eligible for work and have lost their jobs without having done any wrong. To collect the unemployment benefits one must be actively looking for work, and willing/ ready/ capable of working. It is also a necessity that to be eligible one must have worked before and earned a given wage in different states.
The report engages in microeconomic policy evaluation of the increase in unemployment benefits including evidence that the increase in the benefits will also lead to a high increase in unemployment levels. The report also considers the Australian Unemployment benefits as a case study for the project. Unemployment Benefits Increase Policy Evaluation In Australia, every citizen looking for work is entitled to an employment benefit of $492.60, who also qualify for about $121 to be given for assisting in rent payment during a fortnight.
Currently, the unemployment benefit is $474.20, which includes the costs of housing. Australia is one of the countries where individuals remain indefinitely on the dole (Whyte, 2013). Efficiency and Equity are commonly used terms to define market equilibrium. Market equilibrium is the position where demand meets supply perfectly. According to Pareto, efficiency is when resource allocation is attained without hurting another, which in demand and supply is given as the market equilibrium. According to economists, efficiency is attained through utility maximization.
Equity is given as the satisfaction that the members gain after the utilities are distributed. Reduced benefits increase employment, while increased benefits reduce employment rates (Farber & Robert, 2015). The unemployment benefit occurs as a welfare program that has significantly helped in the reduction of poverty through supporting the unemployed through the cash transfer. The cash transfer leads to an increase in the utility level of beneficiaries.
ABS. (2017, 4 13). Australian Bureau of Statistics. Retrieved from 6202.0 - Labour Force, Australia: http://www.abs.gov.au/ausstats/abs@.nsf/mf/6202.0
Bojas, G. J. (2002). Labor Economics. New York: McGraw-Hill.
Farber, H. S., & Robert, G. V. (2015). Do extended unemployment benefits lengthen unemployment spells? Evidence from recent cycles in the US labor market. Journal of Human Resources , 873 - 909.
Gerfin, M., & Michael, L. (2002). A microeconometric evaluation of the active labour market policy in Switzerland. The Economic Journal, 854 - 893.
Hagedorn, M., Fatih, K., Iourii, M., & Kurt, M. (2013). Unemployment benefits and unemployment in the great recession: the role of macro effects. No. w19499. National Bureau of Economic Research.
Keynes, J. M. (2007). The General Theory of Employment, Interest and Money. Basingstoke, Hampshire: Palgrave Macmillan.
Launov, A., & Klaus, W. (2013). Estimating incentive and welfare effects of nonstationary unemployment benefits. International Economic Review, 1159 -1198.
McCombie, J., & Anthony, P. T. (2016). Economic growth and the balance-of-payments constraint. New York: Springer publishers.
Trading Economics. (2017, 4 13). Australia Unemployment Rate. Retrieved from Trading Economics: http://www.tradingeconomics.com/australia/unemployment-rate
Whyte, S. (2013). Dole around the world: how does Australia stack up? Crikey, 1-1 Retrieved from: https://www.crikey.com.au/2013/01/16/dole-around-the-world-how-does-australia-stack-up/.