Unemployment Benefits Versus Conditional Negative Income Taxes

July 1, 1995

Preview Citation

Format: Chicago

Dennis J. Snower Unemployment Benefits Versus Conditional Negative Income Taxes, (USA: International Monetary Fund, 1995) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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

Subject: Employment, Expenditure, Income tax systems, Labor, Personal income tax, Taxes, Unemployment, Unemployment benefits

Keywords: Employment, Europe, Government budget constraint, Income tax systems, Negative income tax scheme, Negative income tax system, Personal income tax, Systems operative, Unemployment, Unemployment benefit system, Unemployment benefits, Unemployment insurance, Western Europe, WP

Publication Details

Pages:

22
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1995/065
Stock No:

WPIEA0651995
ISBN:

9781451848649
ISSN:

1018-5941

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