The Simple Economics of Benefit Transfers
42 Pages Posted: 15 Feb 2006
Date Written: January 1995
Abstract
The paper examines the employment and unemployment implications of permitting unemployed people to use part of their unemployment benefits to provide employment vouchers to the firms that hire them. This opportunity to transfer unemployment benefits into employment subsidies--"benefit transfers" for short--would help replace the unemployment trap by an incentive to work. The vouchers rise with people`s unemployment durations and with the amount of training provided. The policy would be costless to the government since the cost of the employment vouchers is set equal to the amount saved on unemployment benefits. It would not be inflationary since the long-term unemployed, on whom the vouchers are targeted, have little influence on wage setting.
JEL Classification: J23, J24, J31, J32, J64
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Unemployment, Growth and Taxation in Industrial Countries
By Francesco Daveri and Guido Tabellini
-
By Jan C. Van Ours and Michèle Belot
-
Policy Complementarities: The Case for Fundamental Labor Market Reform
By David T. Coe
-
Labor Market Institutions and Demographic Employment Patterns
By Giuseppe Bertola, Francine D. Blau, ...
-
Labour Market Institutions and Demographic Employment Patterns
By Giuseppe Bertola, Francine D. Blau, ...
-
By Giuseppe Bertola, Francine D. Blau, ...
-
By Giuseppe Bertola, Francine D. Blau, ...
-
Taxation and the Structure of Labor Markets: The Case of Corporatism
By Lawrence H. Summers, Jonathan Gruber, ...