The Theory and Practice of Wage Subsidisation: Some Historical Reflections

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The Theory and Practice of Wage Subsidisation: Some Historical Reflections

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F. Wilkinson

Abstract

Economists explain welfare dependency of the unemployed and in-work poverty by the low labour market quality of the poor. Work can be made to pay by working family tax credits. But these might lower wages and price non-recipients out of the market, widening the eligibility for the wage supplementation and raising social welfare bills. This was precisely the effect of the Speenhamland system of wage supplementation of the early 19th Century which permanently affected labour markets, and attitudes to welfare and the poor. The possibility of working family tax credit having a similar effect cannot be ruled out.

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Paper provided by ESRC Centre for Business Research in its series ESRC Centre for Business Research - Working Papers with number wp201.

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Date of creation: Jun 2001
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Handle: RePEc:cbr:cbrwps:wp201

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Find related papers by JEL classification:
J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
J4 - Labor and Demographic Economics - - Particular Labor Markets
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

This paper has been announced in the following NEP Reports:

NEP-ALL-2002-04-25 (All new papers)
NEP-LAB-2002-04-25 (Labour Economics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Toye, John, 1997. "Keynes on Population and Economic Growth," Cambridge Journal of Economics, Oxford University Press, vol. 21(1), pages 1-26, January.
Fortin, Pierre & Keil, Manfred & Symons, James, 2001. "The," Oxford Economic Papers, Oxford University Press, vol. 53(1), pages 67-93, January.

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Frank Wilkinson, 2002. "Productive Systems and the Structuring Role of Economic and Social Theories," ESRC Centre for Business Research - Working Papers wp225, ESRC Centre for Business Research. [Downloadable!]

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