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higher wages. The standard literature stipulates that the identity of the entity that is statutorily entitled for the subsidy … wages with the gift of exerting higher effort. Thus, if a wage subsidy is implemented by indirectly subsidizing employers …, employers face a lower cost of labor and increase their wages, leading workers to reciprocate with higher effort and …
Persistent link: https://www.econbiz.de/10012949108
We study the role of social long term care (LTC) insurance when income taxation and private insurance markets are imperfect. Policy instruments include public provision of LTC as well as a subsidy on private insurance. The subsidy scheme may be linear or nonlinear. For the linear part we...
Persistent link: https://www.econbiz.de/10013124972