Wednesday, December 14, 2016

Moral hazard of unemployment insurance?

Two years ago, I met a German lady who had married a Singaporean and had lived in Singapore for 25 years. She said:

"Mr. Tan. Most people in Singapore think that they unemployed people enjoy taking advantage of unemployment benefit. This is not the case in the German town that I was brought up. The workers lost their jobs when the shipyards were no longer viable in Germany. Although they received unemployment benefit, they were embarrassed. They tried their best to find alternative work. "

Some people may take advantage of the system. But most people are hard working and will try to get off the benefit as soon as they can.

This is a perspective that I want the PAP MPs to know. It is not like what this MP thinks.

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