Holzner, Christian; Meier, Volker; Werding, Martin - In: Journal of Macroeconomics 32 (2010) 1, pp. 157-168
The impact of a stronger work requirement for welfare recipients in a workfare program is studied in an efficiency wage model where a representative firm chooses its level of monitoring activities. A stricter workfare policy raises employment as well as the monitoring intensity. It typically...