Why many eligible individuals choose not to go on welfare


Autoria(s): Liu, PW; Zhang, J; Zhang, JS
Contribuinte(s)

D.W. Jansen

Data(s)

01/01/2005

Resumo

This article investigates why many eligible for welfare do not participate. We show that on-the-job wage-rising potential is the key factor motivating nonparticipation. Although individuals with very low earnings and little wage-rising potential are typically welfare recipients, those with good wage-rising potential may choose to work, participate in old age, or never participate. Nonparticipation remains the best choice for eligible individuals with large wage-rising potential even if universal old-age social security is available. We will also apply this model to a comprehensive welfare system in Hong Kong.

Identificador

http://espace.library.uq.edu.au/view/UQ:76141

Idioma(s)

eng

Publicador

Western Economic Assoc Int

Palavras-Chave #Economics #Participation #Stigma #Insurance #Growth #Model #C1 #340210 Welfare Economics #720105 Income policy
Tipo

Journal Article