Working Paper: CEPR ID: DP1471
Authors: J. Michael Orszag; Dennis J. Snower
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: incapacity benefits; employment policy; labour force participation
JEL Codes: J23; J24; J31; J32; J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| incapacity benefits as employment vouchers (H55) | employment rates (J68) |
| employment vouchers (J68) | incomes of incapacity benefit recipients (E25) |
| employment vouchers (J68) | willingness to work (J29) |
| employment vouchers (J68) | employers' labor costs (J39) |
| incomes of incapacity benefit recipients (E25) | willingness to work (J29) |