minimum wage set below the prevailing market wage can send the market wage down and unemployment up. Unemployment benefits can …, by countering some of the risk of unemployment, neutralize the inefficiencies of households' tendency to oversupply labor … prevailing market wage can cause the market wage to fall and unemployment to rise.Unemployment benefits, by countering some of …

and unemployment to influence the supply curve of labor. An increase in unemployment could prompt households to send more … minimum wage policy and the provision of unemployment benefits. It is argued that certain kinds of unemployment benefits can …