Showing 1 - 10 of 48
We consider an economy characterised by involuntary unemployment among low skilled workers, and investigate the 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...
Persistent link: https://www.econbiz.de/10012958450
We investigate whether the decision to experiment with novel policies is influenced by electoral incentives. Our empirical setting is the U.S. welfare reform in 1996, which marked the most dramatic shift in social policy since the New Deal. We find that electoral incentives matter: governors...
Persistent link: https://www.econbiz.de/10012918056
Divided government is often thought of as causing legislative deadlock. I investigate the link between divided government and economic reforms using a novel data set on welfare reforms in US states between 1978 and 2010. Panel data regressions show that under divided government a US state is...
Persistent link: https://www.econbiz.de/10013315641
The impact of a stronger work requirement for welfare recipients in a workfare program is studied in an efficiency wage … model where a representative firm chooses its level of monitoring activities. A stricter workfare policy raises employment …
Persistent link: https://www.econbiz.de/10012779786
Workfare policies are often introduced in labour market policies to improve the trade-off between incentives and … equilibrium search framework, we show that the effects of workfare policies critically depend on the response of those not in the … programme when they take into account that workfare is a condition for remaining eligible for unemployment benefits. This …
Persistent link: https://www.econbiz.de/10012772228
This paper studies the role of job search assistance programs in optimal welfare-to-work programs. The analysis is based on a framework, that allows for endogenous choice of benefit types and levels, wage taxes or subsidies, and activation measures such as monitoring and job search assistance...
Persistent link: https://www.econbiz.de/10013149361
So-called activation policies aiming at bringing jobless people into work have been a central component of welfare reforms across OECD countries during the last decades. Such policies combine restrictive and enabling programs, but their characteristic feature is that also enabling programs are...
Persistent link: https://www.econbiz.de/10013315743
Workfare proposals concentrate on the work incentives for welfare recipients, thus focusing on the labor supply side …. This paper analyzes the effects workfare has on labor demand when the labor market is unionized. As workfare reduces the … number of recipients of public financial assistance, a workfare regime, as opposed to a welfare system, weakens the outside …
Persistent link: https://www.econbiz.de/10005766227
A reform of a pay-as-you-go social security makes the pensioners worse off and the working generations better off in the period of the reform (in a dynamically efficient economy without altruism). The observed reluctance across all age groups to support such reforms is usually explained by the...
Persistent link: https://www.econbiz.de/10012982332
This paper analyzes a fully funded social security system under the assumption that agents face temptation issues. Agents are required to save through individually managed Personal Security Accounts without, and with mandatory annuitization. When the analysis is restricted to CRRA preferences...
Persistent link: https://www.econbiz.de/10013156228