Aloi, Marta; Lloyd-Braga, Teresa; Leite-Monteiro, Manuel - 2017
implications for employment and income of welfare schemes often advocated as less distortionary. We show that reducing unemployment … benefits in favour of income subsidies (social benefits) reduces employment in general equilibrium and also the income of low … skilled workers, for not too high distortions in the labour market. Furthermore, it leads to a higher tax burden and a welfare …