Blumḳin, Tomer; Pinhas, Haim; Zultan, Ro'i - 2017 - This version: May 31, 2017
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 …