The countries of Northern Europe have high taxes and high benefit levels relative to the average of the industrialized world. Differing views on the effects of these welfare benefits, and the taxes that finance them, have defined the current debate on proposed changes to the welfare state. A team of economists, led by A.B. Atkinson, analyze the extent to which these high taxes and high benefits act as a disincentive to work and explore the effects of welfare benefits on the economy. Their comparative study of Germany, ...
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The countries of Northern Europe have high taxes and high benefit levels relative to the average of the industrialized world. Differing views on the effects of these welfare benefits, and the taxes that finance them, have defined the current debate on proposed changes to the welfare state. A team of economists, led by A.B. Atkinson, analyze the extent to which these high taxes and high benefits act as a disincentive to work and explore the effects of welfare benefits on the economy. Their comparative study of Germany, Denmark, Sweden, and the United Kingdom provides useful empirical evidence and a thoughtful discussion of different labor market institutions to advance the argument that high taxes and high benefits are, in fact, disincentives to work.
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