DP1471 Incapacity Benefits versus Benefit Transfers

Author(s): Mike Orszag, Dennis J. Snower
Publication Date: September 1996
Keyword(s): Employment Policy, Incapacity Benefits, Labour Force Participation
JEL(s): J23, J24, J31, J32, J64
Programme Areas: Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1471

The paper explores the employment implications of allowing people the opportunity of using a portion of their incapacity benefits to provide employment vouchers for employers that hire them. The analysis indicates that introducing this policy could increase employment, raise the incomes of incapacity benefit recipients, and reduce employers? labour costs.