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 …

workfare. To that end we develop a quantitative model of equilibrium unemployment. The model features worker heterogeneity … monitoring and sanctions than in the other two systems. Workfare appears to be inferior to the other two systems. …

employment are made (at least partially) socially acceptable through the workfare nature of the unemployment benefit system and b …