My point is that the shallower the slope of the pre vs. post-redistribution graph the more other factors besides money will motivate people. A big part of the problem is that (at least in the US) the slope is particularly narrow at right around the point where taking a low paying job would cause someone to loose their welfare benefits.
This does have the unfortunate side effect of reducing the number of entry level jobs they can get, so it’s not at all clear this would make it easier for people to get of welfare.
This does have the unfortunate side effect of reducing the number of entry level jobs they can get, so it’s not at all clear this would make it easier for people to get of welfar
The evidence is mixed.. It’s widely believed that minimum wage schemes negatively impact young people, but that can be worked around by exempting them.
My point is that the shallower the slope of the pre vs. post-redistribution graph the more other factors besides money will motivate people. A big part of the problem is that (at least in the US) the slope is particularly narrow at right around the point where taking a low paying job would cause someone to loose their welfare benefits.
Cutting welfare to below subsistence level is not the only or best solution. You can also raise minimum wages, or supplement incomes
This does have the unfortunate side effect of reducing the number of entry level jobs they can get, so it’s not at all clear this would make it easier for people to get of welfare.
Yes, Milton Friedman proposed something similar.
The evidence is mixed.. It’s widely believed that minimum wage schemes negatively impact young people, but that can be worked around by exempting them.