A focus of the Nobel Prize in Economic Sciences, 2010, winning paper is on unemployment, quite expectedly. The Nobel laureates, whose groundbreaking study Markets with Search Costs, won the prize developed and applied their theory to examine the labor market and identify the elusive factors determining unemployment. The model, now accepted in the world of economics as the DMP (Diamond-Mortensen-Pissarides) model goes deep into search behavior of unemployed and jobless vis-a-vis the recruiting behavior of companies and wage formation in the market. One of the most remarkable findings of the study was the nature of the relationship between UI benefits and unemployment.