Social insurance may lead to moral hazard in health and unemployment.
The article explores the concept of moral hazard in social insurance, focusing on health and unemployment insurance. While there is a theoretical possibility of moral hazard in health insurance, empirical evidence is weak and mixed. Similarly, moral hazard in unemployment insurance is possible, but there is no clear support for the idea that it increases unemployment rates. The study aims to understand the potential risks of moral hazard in social insurance and how it may impact the effectiveness of these programs.