Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18859 
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper No. 1220
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The impacts of introducing or tightening time limits on welfare use are studied in an efficiency wage model. Those losing access to regular benefits receive some smaller benefit, which can be interpreted as food stamps. Stricter time limits raise both employment and profits and generally reduce the tax rate. The impact on the net wage is ambiguous. Changes of utility levels of employed workers and recipients of regular social assistance have the same sign as the variation in the net wage. The utility differential between social assistance recipients and food stamp participants shrinks.
Subjects: 
welfare benefits
time limits
efficiency wages
JEL: 
J60
J41
H53
Document Type: 
Working Paper
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