Oskamp, Frank (contributor); Snower, Dennis J. (contributor) - 2006
We explore the far-reaching implications of low-wage subsidies on aggregate employment. Low-wage subsidies have three … raising the payoff of unskilled work relative to skilled work, low-wage subsidies reduce the incentive to become skilled, so … amplifies the negative effect of low-wage subsidies on the incentive to acquire human capital. Thus, the first effect on the one …