TY  - RPRT
        AU  - Kolm, Ann-Sofie
AU  - Tonin, Mirco
        TI  - In-Work Benefits and the Nordic Model
        PY  - 2012/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7084
        UR  - https://www.iza.org/publications/dp7084
        AB  - Welfare benefits in the Nordic countries are often tied to employment. We argue that this is one of the factors behind the success of the Nordic model, where a comprehensive welfare state is associated with high employment. In a general equilibrium setting, the underlining mechanism works through wage moderation and job creation. The benefits make it more important to hold a job, thus lower wages will be accepted, and more jobs created. Moreover, we show that the incentive to acquire higher education improves, further boosting employment in the long run. These positive effects help counteracting the negative impact of taxation.
        KW  - education
KW  - unemployment
KW  - wage adjustment
KW  - in-work benefits
KW  - Nordic model
KW  - skill formation
KW  - earnings
        ER  -