Arbeitspapier
Welfare Benefit Reforms and Employment
We consider an economy characterised by involuntary unemployment among low skilled workers, and investigate the implications for employment and income of welfare schemes often advocated as less distortionary. We show that reducing unemployment benefits in favour of income subsidies (social benefits) reduces employment in general equilibrium and also the income of low skilled workers, for not too high distortions in the labour market. Furthermore, it leads to a higher tax burden and a welfare deterioration. To support employment, we suggest that systems grounded in contribution-based unemployment insurance schemes are to be preferred and strengthened.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 6403
- Klassifikation
-
Wirtschaft
Taxation, Subsidies, and Revenue: General
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Unemployment Insurance; Severance Pay; Plant Closings
- Thema
-
unemployment benefits
social benefits
taxes
unions
employment
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Aloi, Marta
Lloyd-Braga, Teresa
Leite-Monteiro, Manuel
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:22 MESZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Aloi, Marta
- Lloyd-Braga, Teresa
- Leite-Monteiro, Manuel
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2017