Pavoni, Nicola; Violante, G. L. - In: Review of Economic Studies 74 (2007) 1, pp. 283-318
A Welfare-to-Work (WTW) program is a mix of government expenditures on various labour market policies targeted to the unemployed (e.g. unemployment insurance (UI), job search monitoring (JM), social assistance (SA), wage subsidies). This paper provides a dynamic principal—agent framework...