Iacono, Roberto (2025) The welfare versus work paradox. PLOS ONE, 20 (5). ISSN 1932-6203
![]() |
Text
- Published Version
Available under License Creative Commons Attribution. Download (422kB) |
Abstract
How can countries balance work incentives and access to welfare without violating the principle that work shall always be strictly preferred to welfare? In a context in which wages stagnate or drop, and benefit levels are reduced due to austerity measures, the welfare versus work paradox arises. This research shows analytically that when both wages and benefits approach the subsistence level, welfare becomes preferable to work, violating the work incentive principle. The policy implication of this result is that, to maintain the validity of the work incentive principle, minimum wages must be kept above the subsistence threshold.
Item Type: | Article |
---|---|
Additional Information: | © 2025 The Author |
Divisions: | ?? UNIT000058 ?? |
Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HJ Public Finance H Social Sciences > HB Economic Theory |
Date Deposited: | 07 May 2025 07:54 |
Last Modified: | 07 May 2025 07:54 |
URI: | http://eprints.lse.ac.uk/id/eprint/128072 |
Actions (login required)
![]() |
View Item |