# In Michigan, unemployment benefits range from \$81 to \$362 per week, while in Colorado, benefits rang

In Michigan, unemployment benefits range from \$81 to \$362 per week, while in Colorado, benefits range from \$25 to \$502 per week, and in Washington, these benefits can vary between \$158 and \$664 per week.  Notice that these differences alone would imply more than a \$15,000 annual difference in benefits depending on your state.

Program Specifics:

The amount of benefits one receives under each of these programs varies depending on one’s individual earnings prior to becoming unemployed.  However, I am asking you to assume (for simplicity) that we are looking at workers in each of the three states who qualify for the maximum benefit (\$362 per week in Michigan, \$502 per week in Colorado and \$664 per week in Washington).

In addition to differences in the monetary benefits, each of these states also have different methodologies for phasing these benefits out as workers find employment:

-In Colorado, you can earn up to 25% of your unemployment benefit in earned income without any reduction in your benefit.  However, for each dollar beyond this limit you earn, your benefit is reduced by one dollar.

-In Washington, the state takes the benefit recipient’s earned income, subtracts \$5 and multiplies this amount by .75 (with this number rounded up, to the next highest dollar).  This is then the amount that is deducted from the worker’s unemployment benefit. o For example, if a worker qualifying for the \$664 per week as described above found a job earning \$200 per week, their benefit would be reduced by \$147, leaving them with \$717 per week (\$664 in benefits + \$200 in earnings – [(2005)x.75]).

Draw labor leisure diagrams for each of the three states above given the scenarios?

• Posted: 4 years ago
• Due: 14/02/2016
• Budget: \$20