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This substitution to insiders from outsiders following a decrease in the subsidy rate would appear to dampen welfare-loss reduction.
If such general equilibrium effects exist, then a decrease in the subsidy rate for governmental units leaving unchanged the subsidy rate of other firms should reduce the number of employees within these units compared to in the other firms.
If the ratio of the two increases following a decrease in the subsidy rate, this most likely indicates, as mentioned earlier, that employers just want to save on search costs and give priority to workers already employed by renewing their contracts.
Similar(55)
"The main reason is that we will see, once more, a decrease in the unemployment rate.
But he's very pragmatic, he favors a decrease in the capital gains tax rates.
The corporation shares many of the same woes as the rest of the hospital industry -- reduced reimbursement rates from managed care companies, smaller government subsidies and a decrease in the number of patients, who now get more of their care in outpatient settings.
A reduction in subsidies thus leads to a decrease in the hiring of the non-employed disabled.
Their latest report shows a decrease in project success rates.
An early study showed that after 1969, states with increasing abortion rates showed a decrease in overall marriage rates.
This would lead to an approximately twofold decrease in the casualty rate.
The fall in numbers was due to a decrease in both applicants and the acceptance rate.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com