Adequacy of the Weekly Benefit Amount
In: Unemployment Insurance in the United States: Analysis of Policy Issues
The unemployment insurance (UI) system was established to alleviate the distress and hardship caused by involuntary unemployment. Through weekly benefit payments to eligible claimants, the system helps maintain living standards during active job search. The adequacy of the weekly benefit amount in performing the income maintenance function can be gauged by the percentage of lost income that benefits replace. More directly, adequacy depends on how the weekly benefit contributes to maintaining usual levels of household expenditure.
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