TY  - RPRT
        AU  - Addison, John T.
AU  - Barrett, C. R.
AU  - Siebert, W. Stanley
        TI  - Building Blocks in the Economics of Mandates
        PY  - 2005/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1866
        UR  - https://www.iza.org/index.php/publications/dp1866
        AB  - The paper constructs an asymmetric information model to investigate the efficiency and equity cases for government mandated benefits. A mandate can improve workers' insurance, and may also redistribute in favour of more "deserving" workers. The risk is that it may also reduce output. The more diverse are free market contracts – separating the various worker types – the more likely it is that such output effects will on balance serve to reduce welfare. It is shown that adverse effects can be reduced by restricting mandates to larger firms. An alternative to a mandate is direct government provision. We demonstrate that direct government provision has the advantage over mandates of preserving separations.
        KW  - compensation packages
KW  - labour mandates
KW  - asymmetric information
        ER  -