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Incapacity Benefits versus Benefit Transfers

Author

Listed:
  • Orszag, Mike
  • Snower, Dennis J.

Abstract

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’ labour costs.

Suggested Citation

  • Orszag, Mike & Snower, Dennis J., 1996. "Incapacity Benefits versus Benefit Transfers," CEPR Discussion Papers 1471, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1471
    as

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    Keywords

    Employment Policy; Incapacity Benefits; Labour Force Participation;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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