Optimal Employment Subsidies to Heterogeneous Workers: Unemployment-Trap, Job-Additionality and Tax Rates
AbstractUnemployment and welfare benefits generate unemployment traps. In this paper, we design the optimal employment subsidies that allow governments to reduce unemployment traps under constant budget deficit and without diminishing workers' welfare. We explore the effects of work incentives on the shape and on the properties of employment subsidies. We finally address the issues of self-help effect and job-additionality.
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Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (2001)
Issue (Month): 62 ()
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- Daniel Cardona & Fernando Sánchez-Losada, 2004.
"The Unemployment Benefit System: a Redistributive or an Insurance Institution?,"
DEA Working Papers, Universitat de les Illes Balears, Departament d'EconomÃa Aplicada
8, Universitat de les Illes Balears, Departament d'Economía Aplicada.
- Fernando Sanchez Losada & Daniel Cardona, 2005. "The Unemployment Benefit System: a Redistributive or an Insurance Institution?," Working Papers in Economics, Universitat de Barcelona. Espai de Recerca en Economia 129, Universitat de Barcelona. Espai de Recerca en Economia.
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