A Partial Remedy for an Ailing Job Market

By Gary Burtless – Can we bribe employers to increase their payrolls? Many economists, including me, think we can and should, particularly when the job market is in the doldrums. The crucial question is how to design the bribe so it is as cheap and effective as possible.

One idea pushed by economists is to establish a temporary tax subsidy for employers who add to their payrolls.

A simple way to minimize payments to employers is to limit subsidies to those workers who represent net additions to an employer’s payroll. If an employer had 100 workers on its payroll last year, it must have at least 101 this year before obtaining any subsidy. For most employers, this requirement is straightforward to enforce because payrolls must be reported to the unemployment insurance system on a regular basis. more> http://is.gd/5cdHFy


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