Tuesday, February 10, 2009
Public programs do not make as lazy at the end...
Conservative ideologues observers, keep insisting that unemployment insurance and a generous welfare state reduce people´s incentives to work hard and succeed. Yet new evidence shows that this may not be the case as Scandinavians are more committed to their jobs than British or Americans. Will certain myths ever be overcome?
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Another myth regarding the labour market is the rigidity that the minimum wage imposes on the labour market and the fact that it benefited only young and informal workers. The fact that the minimum wage is not used says more about the regulatory system than about its effectiveness in promoting income security. Perhaps new evidence is to come in the awake of current counter-cyclical economic policies.
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