analyze transitions of workers between unemployment, regular employment and employment accompanied by welfare receipt. Working … makes people generally better off than being unemployed, but employed welfare recipients do not reach the life satisfaction …. Our findings allow us to draw cautious conclusions on employment subsidies paid as welfare benefits. …

Generous income support programs as provided by European welfare states have often been blamed to hamper employment …

reducing the generosity of unemployment benefits decreases wages, fosters employment and augments competitiveness as well as … build a two-region RBC model with labor market frictions, idiosyncratic consumption risk, and limited cross …