Unemployment Benefits Versus Conditional Negative Income Taxes

22 Pages Posted: 15 Feb 2006

See all articles by Dennis J. Snower

Dennis J. Snower

University of Kiel - Institute for World Economics (IfW); Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: July 1995

Abstract

The paper analyzes the wage-employment effects of replacing unemployment benefits by negative income taxes. It first surveys the major equity and efficiency effects of unemployment benefits versus negative income taxes, and summarizes the salient features of many European unemployment benefit systems in this light. Second, it presents a simple theoretical model that focuses on the relative wage-employment effects of unemployment benefits versus negative income taxes. Finally, it provides some empirical groundwork for assessing this relative effect.

JEL Classification: E62, H21, H23, H24, H31, H32, J23, J31, J64, J65

Suggested Citation

Snower, Dennis J., Unemployment Benefits Versus Conditional Negative Income Taxes (July 1995). IMF Working Paper No. 95/65, Available at SSRN: https://ssrn.com/abstract=883213

Dennis J. Snower (Contact Author)

University of Kiel - Institute for World Economics (IfW) ( email )

Duesternbrooker Weg 120
D-24118 Kiel
Germany
+49+431-8814-235 (Phone)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
87
Abstract Views
890
Rank
523,966
PlumX Metrics