Problem regarding the reducing unemployment

Reference no: EM131032426

Reducing unemployment.

Problem: 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, 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%.

Required:

Suggest some conditions that might make it easier or harder to find a job this year as opposed to last year. Confounding with these lurking variables makes it impossible to say whether the bonus really caused the increase.

Reference no: EM131032426

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