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Alternative Labor Market Policies to Increase Economic Self-Sufficiency: Mandating Higher Wages, Subsidizing Employment, and Raising Productivity

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  • Neumark, David

    ()
    (University of California, Irvine)

Abstract

The principal means by which individuals and families achieve economic self-sufficiency is through labor market earnings. As a consequence, it is natural for policy makers to look to interventions that increase the ability of individuals and families to achieve an adequate standard of living from participating in the labor market – a goal that has become even more prominent in the post-welfare reform era in the United States. This paper discusses some key policies that are used or can be used to increase economic self-sufficiency by increasing earnings, including mandating higher wages, subsidizing work, and increasing skill formation. Specifically, it reviews evidence on some of the main policies currently in place in the United States, including minimum and living wages, the Earned Income Tax Credit, wage subsidies, and school-to-work programs. Finally, it considers alternative policies that have recently been proposed.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3355.

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Length: 71 pages
Date of creation: Feb 2008
Date of revision:
Publication status: published in: Heinrich, C.; Scholz, J. (eds.), Making the Work-Based Safety Net Work Better Russell Sage Foundation, New York, NY, , 2009, 5-78
Handle: RePEc:iza:izadps:dp3355

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Related research

Keywords: school-to-work; wage subsidies; earned income tax credit; living wages; minimum wages;

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Cited by:
  1. Müller, Kai-Uwe & Steiner, Viktor, 2008. "Would a Legal Minimum Wage Reduce Poverty? A Microsimulation Study for Germany," IZA Discussion Papers 3491, Institute for the Study of Labor (IZA).
  2. Bernhard, Sarah & Gartner, Hermann & Stephan, Gesine, 2008. "Wage subsidies for needy job-seekers and their effect on individual labour market outcomes after the German reforms," IAB Discussion Paper 200821, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Pio Baake & Vanessa von Schlippenbach, 2008. "Upfront Payments and Listing Decisions," Discussion Papers of DIW Berlin 793, DIW Berlin, German Institute for Economic Research.
  4. Kai-Uwe Müller & Viktor Steiner, 2008. "Would a Legal Minimum Wage Reduce Poverty?: A Microsimulation Study for Germany," Discussion Papers of DIW Berlin 791, DIW Berlin, German Institute for Economic Research.

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