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Choosing to become a 'lost cause': the perverse effects of benefit preconditions

Farrell, Lisa and Frijters, P. (2008) Choosing to become a 'lost cause': the perverse effects of benefit preconditions. Oxford Economic Papers, 60 (1). pp. 1-19. ISSN 0030-7653

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This paper argues that preconditions for welfare benefit entitlements based on labour market prospects can be counterproductive when they create an incentive for individuals to abstain from any investment earlier in life that could improve future prospects. Benefit entitlements based partly on investments made prior to labour market entry are then Pareto-improving.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HN Social history and conditions. Social problems. Social reform
H Social Sciences > HV Social pathology. Social and public welfare
Schools: The Business School
Depositing User: Sara Taylor
Date Deposited: 17 Sep 2013 10:59
Last Modified: 17 Sep 2013 10:59


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