Article Abstract:
A study was conducted to examine the implications of the problem of redistribution by welfare agencies using a welfare system model. Focus was made on the features of the transfers, which include their marginal taxback rate, and the work options available to general welfare recipients. Two regimes were considered, namely, one that involved untagged welfare recipients and one that separated the untagged disabled from those with low-ability. Results suggest that the model is consistent with the characteristics of actual welfare systems.
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Article Abstract:
The optimal structure of policies in an economy has three types of unemployement-the disabled, the voluntarily unemployed, and the involuntarily unemployed. The employment policies of a well-informed government are considered which reflects on real-world policies, transfers to the disabled, welfare for non-working employees, unemployment insurance, employment subsidies, and taxes on workers and firms.
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Article Abstract:
An original feature of the U.S. unemployment benefit system, is the systematic use of experience rating. A simple matching model of a rigid labor market that includes firing costs, temporary jobs and a minimum wage in order to analyze this issue for the European labor market is discussed.
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