Unformatted text preview: experience, or low experience. Low experience employers are defined as businesses who laid off fewer than L workers in the previous calendar year. High experience employers are those who laid off more than L workers in the previous calendar year. Low experience employers will pay a lower EI tax than the current amount. High experience employers will pay a higher tax. A worker is defined as being laid off if they lose their job through no fault of their own. a. What type of employers do you expect to be classified as high experience? Low experience? Explain. b. Will this policy change affect frictional unemployment? Explain. c. Will this policy change affect structural unemployment? Explain. d. Will this policy change affect seasonal unemployment? Explain. e. Will this policy change affect cyclical unemployment? Explain....
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- Spring '07
- Unemployment, policy change, high experience, Low Experience, structural unemployment arises