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Comment On The 'Five Economists' Plan: The Original Idea and Further Developments

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  • Patricia Apps
  • Jeff Borland

Abstract

In this paper Peter Dawkins argues for the "wage-tax trade-off" proposed by the "Five Economists" as part of their policy package for reducing unemployment. As he explains, the trade-off involves using an earned income tax credit (EITC) scheme "as a way of increasing the incomes of low-wage earners in low-income families, rather than increases in the award wages safety net". My comments will focus on the EITC component of the package, taking as an example the Lambert (2000) scheme reported in the paper. I will also concentrate on the effects of the scheme for two-parent families.

Suggested Citation

  • Patricia Apps & Jeff Borland, 2002. "Comment On The 'Five Economists' Plan: The Original Idea and Further Developments," CEPR Discussion Papers 451, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:dpaper:451
    as

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    File URL: https://www.cbe.anu.edu.au/researchpapers/CEPR/DP451.pdf
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    References listed on IDEAS

    as
    1. Peter B. Dixon & Maureen T. Rimmer, 2001. "A Wage–Tax Policy to Increase Employment," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(1), pages 64-80, March.
    2. Dixon, R., 1996. "Apparent Asymmetries in the Relationship Between the Participation Rate and the Employment Rate in Australia," Department of Economics - Working Papers Series 522, The University of Melbourne.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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