The paper examines the relative effectiveness of two policy proposals in reducing unemployment and working poverty …: unemployment vouchers and low-wage subsidies. The unemployment vouchers are targeted exclusively at the unemployed (especially the … workers are (i.e. the more their wages rise with employment duration), the more effective will unemployment vouchers be …

. Furthermore, if the presence of skill-biased technological shocks increase unemployment, this may explain why the market it …-between subsidizing education and thereby reducing unemployment and optimizing welfare may be eliminated. We analyse this issue in a …