Incapacity Benefits versus Benefit Transfers

Mike Orszag and Dennis Snower

No 1471, CEPR Discussion Papers from Centre for Economic Policy Research

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.

Keywords: Employment Policy; Incapacity Benefits; Labour Force Participation (search for similar items in EconPapers)
JEL-codes: J23 J24 J31 J32 J64 (search for similar items in EconPapers)
Date: 1996-09
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Working Paper: Incapacity Benefits versus Benefit Transfers (1996)
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