This paper discusses the potential introduction of permanent public subsidies to supplement the wages of low … market segmentation, and widespread in-work poverty. Using a stylized theoretical model, we illustrate how such subsidies … challenges for implementing wage subsidies in Italy's segmented labor market. …

The paper discusses the limits of credit and capital subsidies to finance MSMEs in the presence of jobs … than some of those that get access to credit. We also show that pigouvian wage subsidies equal to the value of the jobs … part of existing government subsidies and deal with market failures resulting from both asymmetric information and jobs …