Policy solutions to crime and joblessness compared
Need to lower unemployment and crime? Then, according to the Cleveland Federal Reserve, the best policy is to introduce wage subsidies.
The Fed's research compares policies aimed at lowering unemployment and crime by adapting the Pissarides (2000) model to include Becker's research on crime and punishment (1968).
It finds that wage subsidies reduce joblessness and the amount of crime committed by both the unemployed and employed. Subsidies also improve social welfare.
A more generous
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