Differentiation of Skills and Unemployment

Author(s):  
Samir Amine

The purpose of this paper is to study an original relationship between the differentiation of jobs and the characteristics of the labor market. Using an original formalization of horizontal and vertical differentiation of workers, this paper shows that an increase in unemployment leads to creating jobs more suited to skilled workers. Introducing a negative income tax system (NIT), the present model shows that this public policy results in a deterioration of the situation of unskilled workers by encouraging firms to create jobs more suited to skilled.

Res Publica ◽  
1979 ◽  
Vol 21 (3) ◽  
pp. 427-441
Author(s):  
Andries Hoogerwerf

This article gives a survey of results of research concerning effects of public policy in the Netherlands. This survey is preceded by a summary of some important American projects (Equality of Educational Opportunity, Head Start, the Negative income tax).The Dutch research reported concerns effects of educational and housing policy on income distribution, effects of sururbanization policy, participation policy, and still other policies.In both countries the dominant conclusion is that the goals of public policy are at least partially realized by the means chosen. However, the conclusion that the welf are state is totally f ailing would go to f ar.Research concerning effects of public policy is still rare. Moreover, it is clear that some goals are realized at least in part by the chosen means.When public policy appears not to be effective, this can be explained from several factors : the contents of policy and the underlying theory, the policy process, the society, the research, and a view which is toonarrow because it takes only short term effects of one particular policy program into account.


1976 ◽  
Vol 4 (1) ◽  
pp. 3-15
Author(s):  
Eitan Berglas

Recent studies find wage subsidies (WS) to be superior to negative income tax (NIT). However, these studies suffer from a serious aggregation problem. A model is suggested in which these aggregation problems are avoided. In this model there exists a WS schedule that increases labor supply compared with an equally costly NIT. However, the WS may be Pareto inferior. Furthermore, for high income workers given any income tax system it is always possible to find a wage tax system which both is Pareto superior and increases labor supply. The merits of the model and its implications for other optimal income tax studies are critically discussed.


2011 ◽  
Vol 204-210 ◽  
pp. 718-723
Author(s):  
Xiang Yu Wan ◽  
Peng Jia

In this paper, we present an agent-based computer simulation model to analyze the dynamic relationship between economic growth and income difference in a transition economy and to evaluate the empirical effects of negative income tax system. Micro agents in the economy form the economic networks and enable the economy to evolve forward through the intelligential evolutionary system and mutual interactions between the agents. Based on the logical reasons of the transition economy, the model finally gives the results of the simulation: when the economy finishes rapid transition and enters into stable development, by implementing negative income tax system, government can effectively decrease income difference while at the same time maintain rapid economic growth.


1998 ◽  
Vol 31 (3) ◽  
pp. 237-257 ◽  
Author(s):  
Peter Dawkins ◽  
David Johnson ◽  
Rosanna Scutella ◽  
Gillian Beer ◽  
Ann Harding

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