Arbeitspapier

Active labour market policy vs employment tax credits: lessons from recent UK reforms

Many welfare-to-work programs in both North America and Europe are directed at making work pay for the low skilled. This paper identifies two alternative policies that are motivated by this same objective – active labour market programs that involve wage subsidies together with improved job matching; and earned income tax credits that supplement wages for working low-income families. Although sharing similar concerns over labour market incentives for low skilled workers, these alternative policies typically differ in many important ways. We present an evaluation of the impacts of two such recent programs designed to enhance the labour market attachment of low-wage workers in the UK. These programs have many features in common and are similar to many policy proposals in Europe and North America. The evaluation of the UK reforms brings empirical evidence into the debate on the effectiveness of these programs and is used to assess what aspects of their design work well and what aspects could be improved.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2002:1

Klassifikation
Wirtschaft
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
Fiscal Policies and Behavior of Economic Agents: Household
National Government Expenditures and Welfare Programs
Labor Force and Employment, Size, and Structure
Time Allocation and Labor Supply
Thema
welfare reform
tax credits
wage subsidies
labour supply

Ereignis
Geistige Schöpfung
(wer)
Blundell, Richard
Meghir, Costas
Ereignis
Veröffentlichung
(wer)
Institute for Labour Market Policy Evaluation (IFAU)
(wo)
Uppsala
(wann)
2002

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Blundell, Richard
  • Meghir, Costas
  • Institute for Labour Market Policy Evaluation (IFAU)

Entstanden

  • 2002

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