Meier, Volker (2008): Workfare in an efficiency wage model. In: Empirica, Vol. 35, No. 2: pp. 165-178 |
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Abstract
The impacts of introducing work requirements for welfare recipients are studied in an efficiency wage model. If the workfare package is not mandatory, it will reduce employment, profits, and utility levels of employed and unemployed workers. In contrast, mandatory effort requirements will generally raise both employment and profits and reduce the tax rate. The impact on the net wage is ambiguous. Changes of utility levels of employed and unemployed workers have the same sign as the variation in the net wage. The possibility of a Pareto improvement may explain the widespread support for welfare to work experiments.
Item Type: | Journal article |
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Faculties: | Economics Economics > Chairs > Chair for Public Economics |
Subjects: | 300 Social sciences > 330 Economics |
Language: | English |
ID Code: | 19183 |
Deposited On: | 15. Apr 2014 08:48 |
Last Modified: | 04. Nov 2020 13:00 |
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Workfare in an Efficiency Wage Model. (deposited 15. Apr 2014 08:48)
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