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.

Question

Mathematics

Giovani Bridges

22 February, 23:26

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.

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Seamus Howe · Answer 1

People by hearing about the bonus of 500 US dollar news had purposely resigned and filed for unemployment.

Step-by-step explanation:

The flaw in the design was basically no restrictions for people who deliberately resign from their companies to get bonuses. If one needy person after struggle get employment he might not risk his job for 500 US dollars.

In the mean while people with experience and currently working in the different companies resigned from their jobs, filling unemployment claims to get bonus and due to experience as well as restoring their jobs easily. So percent Increase is only because of those people who want to earn a bonus.