Choosing to become a 'lost cause': the perverse effects of benefit preconditions
Description
This paper argues that preconditions for welfare benefit entitlements based on labour market prospects can be counterproductive when they create an incentive for individuals to abstain from any investment earlier in life that could improve future prospects. Benefit entitlements based partly on investments made prior to labour market entry are then Pareto-improving.
Impact and interest:
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ID Code: | 224202 |
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Item Type: | Contribution to Journal (Journal Article) |
Refereed: | Yes |
Measurements or Duration: | 19 pages |
Keywords: | Benefits, Incentives, Optimal Welfare, Schooling, Unemployment |
DOI: | 10.1093/oep/gpm017 |
ISSN: | 0030-7653 |
Pure ID: | 33599350 |
Divisions: | Past > QUT Faculties & Divisions > QUT Business School Current > Schools > School of Economics & Finance |
Copyright Owner: | Consult author(s) regarding copyright matters |
Copyright Statement: | This work is covered by copyright. Unless the document is being made available under a Creative Commons Licence, you must assume that re-use is limited to personal use and that permission from the copyright owner must be obtained for all other uses. If the document is available under a Creative Commons License (or other specified license) then refer to the Licence for details of permitted re-use. It is a condition of access that users recognise and abide by the legal requirements associated with these rights. If you believe that this work infringes copyright please provide details by email to qut.copyright@qut.edu.au |
Deposited On: | 06 Nov 2021 19:22 |
Last Modified: | 06 Apr 2024 19:06 |
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