Corneo, Giacomo - Fachbereich Wirtschaftswissenschaft, Freie Universität … - 2013
This paper challanges the view that weak work norms in generous welfare states makes them economically unsustainable. I … develop a dynamic model of family-transmitted values that has a laissez-faire equilibrium with strong work norms coexisting … with a social-insurance equilibrium with weak work norms. While the former has better incentives, the latter induces more …