Unemployment Benefits and Unemployment

The unemployment rate, which is considered as one of the most important factors that determine one\u27s economy, could be negatively affected by overly generous unemployment benefits. Unemployment becomes one of the most important issues facing policy makers during economic hard times. The concern when deciding on unemployment is the possible effect of raising unemployment benefits on those who receive them. This consideration by the government seemed to make some people feel settled while unemployed. The question then is, does the unemployment benefit really lead them deciding to put off looking for work and thus keep the unemployment rate high? By looking at a cross section of American states we will show what effects unemployment benefits have on unemployment rate in some specific states