Mathematical Analysis of Unemployment Benefits

Authors

  • Chandrasekhar Putcha California State University at Fullerton
  • Brian Sloboda Center for Management and Entrepreneurship, School of Advanced Studies, University of Phoenix
  • Adam Tabba California State University at Fullerton
  • Vineet Penumarthy California State University at Fullerton
  • Mohammadreza Khani Western Michigan University

Keywords:

Business, Economics, Finance, Unemployment Insurance, Cost

Abstract

During the Great Recession, expenditures on unemployment insurance (UI) benefits increased, and the benefits were extended. This research deals with development of a mathematical model to calculate unemployment benefits. At a conceptual level, unemployment benefits can be considered as directly proportional to salary and the employment period of the worker prior to being laid off. It is also inversely proportional to factors such as other governmental benefits received in that period of unemployment. The approach in this paper presents the need to calculate the unemployment benefits to keep up with the capricious wages and changing regulations. This analysis will include state and federal government benefits. Each state should be able to adapt the new formula, so it can assess the proper baseline for calculating the unemployment benefits needed for their specific cost of living requirements.

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Published

2017-10-01

How to Cite

Putcha, C., Sloboda, B., Tabba, A., Penumarthy, V., & Khani, M. (2017). Mathematical Analysis of Unemployment Benefits. Journal of Applied Business and Economics, 19(6). Retrieved from https://articlegateway.com/index.php/JABE/article/view/731

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Articles