Incapacity Benefits versus Benefit Transfers
J. Michael Orszag
Towers Watson - Reigate (Surrey Office); Institute for the Study of Labor (IZA)
Dennis J. Snower
University of Kiel - Institute for World Economics (IfW); Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)
CEPR Discussion Paper Series No. 1471
The paper explores the employment implications of allowing people the opportunity of using a portion of their incapacity benefits to provide employment vouchers for employers that hire them. The analysis indicates that introducing this policy could increase employment, raise the incomes of incapacity benefit recipients, and reduce employers' labor costs.
JEL Classification: J23, J24, J31, J32, J64
Date posted: March 19, 1997
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