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Public Employment Services and European Law$
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Mark Freedland FBA, Paul Craig QC FBA, Catherine Jacqueson, and Nicola Kountouris

Print publication date: 2007

Print ISBN-13: 9780199233489

Published to Oxford Scholarship Online: January 2009

DOI: 10.1093/acprof:oso/9780199233489.001.0001

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Making Work Pay and ‘Employment Friendly Wages’

Making Work Pay and ‘Employment Friendly Wages’

Chapter:
(p.276) 8 Making Work Pay and ‘Employment Friendly Wages’
Source:
Public Employment Services and European Law
Author(s):

Mark Freedland

Paul Craig (Contributor Webpage)

Catherine Jacqueson

Nicola Kountouris

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199233489.003.0009

This chapter shifts the focus on a recently emerged, but already well established, activity performed by PES, that is to say the delivery of making work pay (MWP) policies. A key argument of the chapter is that these policies — whether in the form of working tax credits, subsidised personal work contracts, statutory minimum wages, or tax and social security rebates for employers hiring long term unemployed workers — have the dual function of rendering wages and labour costs more attractive for, respectively, unemployed workers and businesses. It is highlighted how the emergence of these policies is strictly intertwined with the development of more workfare oriented ALMPs, working as the carrot accompanying the stick provided by active labour market policies.

Keywords:   making work pay, minimum wage, tax credits, subsidised contracts, in work benefits, employment friendly wages

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