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Labour Market Policy and Welfare Reform: Meeting Distribution and Efficiency Objectives

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  • Richard Blundell

Abstract

Alongside the growth in overall employment and the steady rise in average real incomes over the 1990s, many developed countries experienced a concentration of low labour market attachment and low pay among certain groups in society. In response, the focus of welfare policy shifted towards targeted 'making work pay' programs. This paper considers the validity of the arguments underlying this shift in welfare policy. It examines two broad classes of policies: active labour market programs and earned income tax credits.

Suggested Citation

  • Richard Blundell, 2004. "Labour Market Policy and Welfare Reform: Meeting Distribution and Efficiency Objectives," De Economist, Springer, vol. 152(2), pages 233-250, June.
    • Handle: RePEc:kap:decono:v:152:y:2004:i:2:p:233-250
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    Cited by:

    1. Trine Filges & John Kennes & Torban Tranaes, 2006. "Social Preferences and Labor Market Policy," 2006 Meeting Papers 562, Society for Economic Dynamics.
    2. Filges, Trine & Kennes, John & Larsen, Birthe & Tranæs, Torben, 2011. "Labour market programmes and the equity-efficiency trade-off," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 738-753.
    3. Alfonso Arpaia & Gilles Mourre, 2012. "Institutions And Performance In European Labour Markets: Taking A Fresh Look At Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 1-41, February.
    4. Filges, Trine & Kennes, John & Larsen, Birthe & Tranæs, Torben, 2007. "Labour Market Policy and the Equity-Efficiency Trade-Off," IZA Discussion Papers 2824, Institute of Labor Economics (IZA).

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