The Theory and Practice of Wage Subsidisation: Some Historical Reflections

F. Wilkinson

Working Papers from Centre for Business Research, University of Cambridge

Abstract: Economists explain welfare dependency of the unemployed and in-work poverty by the low labour market quality of the poor. Work can be made to pay by working family tax credits. But these might lower wages and price non-recipients out of the market, widening the eligibility for the wage supplementation and raising social welfare bills. This was precisely the effect of the Speenhamland system of wage supplementation of the early 19th Century which permanently affected labour markets, and attitudes to welfare and the poor. The possibility of working family tax credit having a similar effect cannot be ruled out.

Keywords: Wage supplementation; welfare to work and labour markets (search for similar items in EconPapers)
JEL-codes: I38 J4 J58 J78 (search for similar items in EconPapers)
Date: 2001-06
New Economics Papers: this item is included in nep-lab
Note: PRO-2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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