Choosing to become a 'lost cause': the perverse effects of benefit preconditions
AbstractThis paper argues that preconditions for welfare benefit entitlements based on labour market prospects can be counterproductive when they create an incentive for individuals to abstain from any investment earlier in life that could improve future prospects. Benefit entitlements based partly on investments made prior to labour market entry are then Pareto-improving. Copyright 2008 , Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 60 (2008)
Issue (Month): 1 (January)
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Other versions of this item:
- Lisa Farrell & Paul Frijters, 2003. "Choosing To Become A ‘Lost Cause’:The Perverse Effects Of Benefit Preconditions," Department of Economics - Working Papers Series 886, The University of Melbourne.
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
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