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IZA Discussion Paper No. 3355
February 2008
Alternative Labor Market Policies to Increase Economic Self-Sufficiency: Mandating Higher Wages, Subsidizing Employment, and Raising Productivity

published in: Heinrich, C.; Scholz, J. (eds.), Making the Work-Based Safety Net Work Better Russell Sage Foundation, New York, NY, , 2009, 5-78

The principal means by which individuals and families achieve economic self-sufficiency is through labor market earnings. As a consequence, it is natural for policy makers to look to interventions that increase the ability of individuals and families to achieve an adequate standard of living from participating in the labor market – a goal that has become even more prominent in the post-welfare reform era in the United States. This paper discusses some key policies that are used or can be used to increase economic self-sufficiency by increasing earnings, including mandating higher wages, subsidizing work, and increasing skill formation. Specifically, it reviews evidence on some of the main policies currently in place in the United States, including minimum and living wages, the Earned Income Tax Credit, wage subsidies, and school-to-work programs. Finally, it considers alternative policies that have recently been proposed.

Kommunikation
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
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+352 585-855-501
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Christina Gathmann
christina.gathmann@liser.lu

Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

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