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Welfare programs and motivation bias of social workers

  • Jean-Marie Lozachmeur

    (Toulouse School of Economics)

  • Pierre Boyer

    (University of Mannheim)

This paper studies optimal disability and welfare benets with imperfect disability tagging. Labor supply is aected by the levels of both disability and welfare benets. The tagging process is implemented by social workers that may have some altruism toward claimants. All the individuals that are not working are eligible for welfare benets. We analyze the optimal structure of benets and the implications of a reform aimed at raising the standard for being eligible for disability benets.

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File URL: https://economicdynamics.org/meetpapers/2013/paper_617.pdf
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Paper provided by Society for Economic Dynamics in its series 2013 Meeting Papers with number 617.

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Date of creation: 2013
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Handle: RePEc:red:sed013:617
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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