The government wants to encourage individuals on welfare to become employed. It is considering two possible incentive
Question:
a. Give firms $2 per hour for every individual on welfare who is hired.
b. Give each firm that hires one or more welfare workers a payment of $1000 per year, irrespective of the number of hires.
To what extent is each of these programs likely to be effective at increasing the employment opportunities for welfare workers?
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