Unemployment Benefits Versus Conditional Negative Income Taxes
Summary:
The paper analyzes the wage-employment effects of replacing unemployment benefits by negative income taxes. It first surveys the major equity and efficiency effects of unemployment benefits versus negative income taxes, and summarizes the salient features of many European unemployment benefit systems in this light. Second, it presents a simple theoretical model that focuses on the relative wage-employment effects of unemployment benefits versus negative income taxes. Finally, it provides some empirical groundwork for assessing this relative effect
Series:
Working Paper No. 1995/065
Subject:
Employment Expenditure Income tax systems Labor Personal income tax Taxes Unemployment Unemployment benefits
English
Publication Date:
July 1, 1995
ISBN/ISSN:
9781451848649/1018-5941
Stock No:
WPIEA0651995
Pages:
22
Please address any questions about this title to publications@imf.org