Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis J. - 2010 - October 2010 (this final and revised version)
particularly useful to policy makers, we focus on policies that are "approximately welfare efficient," i.e. policies that (a …) improve employment and welfare, (b) do not raise earnings inequality and (c) are self-financing. This criterion enables us to … can be approximately welfare efficient, while low-wage subsidies do not satisfy this criterion. Even in terms of …
