Workfare, Monitoring, and Efficiency Wages

Christian Ludwig Holzner, Volker Meier () and Martin Werding ()

No 1749, CESifo Working Paper Series from CESifo Group Munich

Abstract: The impact of a stronger work requirement for welfare recipients in a workfare program is studied in an efficiency wage model where a representative firm chooses its level of monitoring activities. A stricter workfare policy raises employment and monitoring activities. It typically increases profits and reduces the tax rate. The impact on the net wage isambiguous. Utility levels of employed workers and welfare recipients may increase even if the net wage declines. The utility differential between these two groups of workers shrinks.

Keywords: workfare; welfare; efficiency wages; monitoring (search for similar items in EconPapers)
JEL-codes: H53 J41 J60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab, nep-pbe and nep-upt
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.cesifo-group.de/portal/page/portal/DocB ... 6/cesifo1_wp1749.pdf (application/pdf)

Related works:
Journal Article: Workfare, monitoring, and efficiency wages (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ces:ceswps:_1749

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Group Munich
Address: Poschingerstrasse 5, 81679 Munich
Contact information at EDIRC.
Series data maintained by Julio Saavedra ().