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Work sharing with Market --Resolving high unemployment

  • Yan Jun
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    The enterprise where work sharing is carried out can achieve corresponding unemployment benefits. The efficiency wage theory considers that unemployment rate may increase productivity, But after the productivity reaches 100%, the productivity is still 100% when the unemployment rate arises again. Therefore, dropping the unemployment rate to the point a [fig(1)] will not lose the productivity through the work sharing. The unemployment benefits achieved by the unemployed men set time limit. The part which exceeds time-limit can be taken as reduction of enterprises taxes. Staff and works of work sharing may do second job but the enterprise where second work be done can't achieve the unemployment benefits ,so unemployment insurance ( system) will be changed primary income ensure(system).

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    Paper provided by EconWPA in its series Macroeconomics with number 0501017.

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    Length: 1 pages
    Date of creation: 14 Jan 2005
    Date of revision:
    Handle: RePEc:wpa:wuwpma:0501017
    Note: Type of Document - pdf; pages: 1. Resolving high unemployment
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