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See detailOptimal Employment Subsidies to Heterogeneous Workers: Unemployment-Trap, Job-Additionality and Tax Rates
Picard, Pierre M UL

in Annales d’Economie et de Statistique = Annals of Economics and Statistics (2001), 62

Unemployment and welfare benefits generate unemployment traps. In this paper, we design the optimal employment subsidies that allow governments to reduce unemployment traps under constant budget deficit ... [more ▼]

Unemployment and welfare benefits generate unemployment traps. In this paper, we design the optimal employment subsidies that allow governments to reduce unemployment traps under constant budget deficit and without diminishing workers' welfare. We explore the effects of work incentives on the shape and on the properties of employment subsidies. We finally address the issues of self-help effect and job-additionality. [less ▲]

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