This paper discusses the primary policy strategies for reducing poverty while maintaining work incentives that have been analyzed in the literature. These strategies have been presented in a context in which a structure of income support policies and labor market constraints already exists. Existing policies typically have two characteristics: they are categorical and piecemeal in their coverage, and they contain serious ...

Réduire la pauvreté et accroître l’emploi : Considérations de base et projets sur les stratégies alternatives

Les politiques visant à reduire la pauvreté ont souvent échouées à cause du besoin de ne pas diminuer les incitations à travailler. Il s’agit d’une illustration de la tension classique entre l’équité et l’efficience car la redistribution des revenus à partir des plus aisés en faveur de ceux plus modestes réduit les incitations aux deux groupes d’offrir leur main d’oeuvre ou de prendre des initiatives. Cette situation est souvent identifiée par le terme de "piège de la pauvreté" car la mise en place de mesures de transfert des revenues réduit les incitations à ceux dont les gains salariaux sont peu importants de rechercher un emploi et d’y rester avec la conséquence qu’ils paraissent figés dans la misère.

L’étude considère les differentes strategies de base mise en avant dans la litterature visant à reduire la pauvreté tout en préservant les incitations au travail. Ces strategies sont présentées dans le cadre d’un système de soutien des revenues accompané des contraintes du marché ...

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Reducing Poverty while Increasing Employment: A Primer on Alternative Strategies, and a Blueprint

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Robert Haveman ()

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Abstract

Policy to reduce poverty has often foundered on the issue of work incentives. The issue is a manifestation of the traditional conflict between equity and efficiency; the redistribution of income from higher to lower income people typically leads to reduced incentives for both groups to supply labor to the market, or to exercise initiative. This conflict is also known as the "poverty trap"--with income transfer (welfare) programs in place, those with low earned income have a reduced incentive to seek and accept employment, and as a result appear trapped in poverty.

This paper discusses the primary policy strategies for reducing poverty while maintaining work incentives that have been analyzed in the literature. These strategies have been presented in a context in which a structure of income support policies and labor market constraints already exists. Existing policies typically have two characteristics: they are categorical and piecemeal in their coverage, and they contain serious ...

Réduire la pauvreté et accroître l’emploi : Considérations de base et projets sur les stratégies alternatives

Les politiques visant à reduire la pauvreté ont souvent échouées à cause du besoin de ne pas diminuer les incitations à travailler. Il s’agit d’une illustration de la tension classique entre l’équité et l’efficience car la redistribution des revenus à partir des plus aisés en faveur de ceux plus modestes réduit les incitations aux deux groupes d’offrir leur main d’oeuvre ou de prendre des initiatives. Cette situation est souvent identifiée par le terme de "piège de la pauvreté" car la mise en place de mesures de transfert des revenues réduit les incitations à ceux dont les gains salariaux sont peu importants de rechercher un emploi et d’y rester avec la conséquence qu’ils paraissent figés dans la misère.

L’étude considère les differentes strategies de base mise en avant dans la litterature visant à reduire la pauvreté tout en préservant les incitations au travail. Ces strategies sont présentées dans le cadre d’un système de soutien des revenues accompané des contraintes du marché ...

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Paper provided by OECD Directorate for Employment, Labour and Social Affairs in its series OECD Jobs Study Working Papers with number 7.

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Date of creation: 1995
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Handle: RePEc:oec:elsaac:7-en

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  1. Ochel, Wolfgang, 1998. "Mehr Beschäftigung und weniger Arbeitslosigkeit : Amerika, hast du es besser? (More employment and less unemployment : America - are you any better off?)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 31(2), pages 262-276. [Downloadable!]
  2. Jan Boone & Ruud de Mooij, . "Tax policy in a model of search with training," Research memoranda 161, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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  3. A. Lans Bovenberg & Johan J. Graafland & Ruud A. de Mooij, 1998. "Tax Reform and the Dutch Labor Market: An Applied General Equilibrium Approach," NBER Working Papers 6693, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Primoz Dolenc & Milan Vodopivec, 2005. "Does work pay in Slovenia?," Financial Theory and Practice, Institute of Public Finance, vol. 29(4), pages 341-362. [Downloadable!]
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